We all know the gloomy statistics of startup success: less than 10% make it. But what is it that makes some startups fail while others succeed? Steve Blank, a Stanford professor a a startup guru will tell you that most startups don’t fail because they didn’t develop a product. They fail because they didn’t develop a market.
Three months ago, Bjoern Herrmann and 21 year old Max Marmer decided to put some hard data to the test, by benchmarking 3,200 statrups on 25 KPIs (Key Performance Indicators) in their very buzzed Startup Genome Report. They didn’t stop at just writing reports, and have put together a startup accelerator in Silicon Valley, called Blackbox.
Today, they’ve launched a t0ol called The Startup Genome Compass, to help you benchmark your own startup against the winners and evaluate your chances of success and diagnose problems. The KPIs are arranged across five dimensions: Customers, Product, Team, Business Model and Financials and in four stages of the startup life-cycle Discovery, Validation, Efficiency and Scale. Below are a few screenshots of the tool:
From the Blackbox official announcement on the Startup Genome Blog:
In our current dataset we have detected inconsistency – indicators of premature scaling – in 70% of startups. The difference in performance numbers are pretty astonishing.
1. No startup that scaled prematurely passed the 100,000 user mark.
2. Startups that scale properly grow about 20 times faster than startups that scale prematurely.
3. 93% of startups that scale prematurely never break the $100k revenue per month threshold.
The Compass tool can be tested here. was released along with a 90-page report on premature scaling.
He is a former General Partner at Google Ventures (GV) in Europe, former head of Google for Entrepreneurs in Europe, and founding head of Campus London, Google's first startup hub. Eze writes on Israeli tech, venture capital, artificial intelligence, and founder strategy.
He is also the founder of Techbikers, a nonprofit that brings together the startup ecosystem on cycling challenges in support of Room to Read.
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