Based on an analysis of 101 startup postmortems, tackling problems that are interesting to solve but do not serve an actual market need was the number one reason for failure, cited in 42% of postmortems. Other top reasons included not pivoting quickly enough away from bad products, hires, or decisions (7%); issues with location not matching the startup's concept or problems with remote teams (9%); and not allocating money and time judiciously (17%).