Well there are a few factors; usually the one that happens most often is that the startup company is lacking enough finances to continue in their activity and to develop their startup into a stage where the company can be making as much, so that they can get to a break-even point and ultimately get to the safe side. However the other factors that can also follow up the startup can be, by having the startup involved in some technological sector and eventually while the startup is just emerging, there will be technological advancement which outdates the company´s product and therefore creates a gap which is hard to cover in time but also financially, which in today´s world often happens. Even though this usually happens to companies which are already developed just as what has happened to Nokia.
These kinds of companies have it harder to undergo some transition into the next stage, and if they are late or make the wrong step, it can be fatal and can lead to an ultimate shutdown of the company. In the example of Nokia, it was shown as they missed this giant leap, even in this case where they have just missed the right path that was a trend of emerging smartphones and the technologies included. Perhaps there are also other competitive factors that chase the startups, because usually these startups form based on some trend, and at this trend spotting stage it is crucial to find the trend as fast as possible so that the startup has head start from the competition which can have the same idea at the end of the day.
However, all of these factors I have mentioned are usually happening at the so called pre-consumer stage, also the technological transition which is crucial for the company to evaluate the technological advancement before going to the stage of selling the product at the consumer stage.
Then there are still problems that can be emerging later as the product is being introduced to the consumers. There are much of the problems that can occur, such as wrong setting of pricing or a bad chosen strategy, however the problem that can be the biggest there, is the basic usage of the product for the consumers. What do I mean? I mean, I have got across of so many unnecessary products that have been developed by startups for consumers. Ultimately seeing the product of such startup after a few months of operation, the startup starts to diminish, until it completely ends with no operation at all. The only problem of this kind of startup is that the consumers did not find it useful or valuable enough to buy it, the product did not have a future, there wasn’t any real value, not only financial but somehow a value that would lead the consumer into not wanting but needing that specific product. If the startup would do it in a way that it would be a want at least, perhaps somehow it would survive, because there a few like that, but if the product is very common and by nothing special product, it cannot surprise the consumers or impress them.
Therefore, the consumers will not buy it or support it. However, the startups especially in today´s world should be very cautious and watch the market and consumers carefully, because everything develops very quickly and they should act according to that. Perhaps, fast forwarding into future, there will be smaller amounts of startups, but they will be successful just like today meaningful to the fullest.