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The Untold Lessons from Startup Failures

Lessons from 2017 LinkedIn Top Startups list, millennials make up most of the digital nomads, Google goes nuclear to fuel AI and fake candidates are increasing

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The Deputy
October 17, 2024

“Smart people learn from their mistakes. Wise people learn from the mistakes of others"

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Before you READ further, use promo code “WFHCoffee” and get 20% off any bag of freshly roasted Sumato Coffee. ☕️

In today’s email:

  • Job News: The 2017 Top 50 Startups to Watch: Lessons from Success and Failure

  • Overheard at coffee: 10.2 million U.S. “digital nomads” out there

  • Trending AI News: Google eyes nuclear for AI growth

  • Hot Jobs: (keep scrolling down ⬇️)

  • Recruiting Fails: Fake candidates are a thing now ❌

Job News

The 2017 Top 50 Startups to Watch: Lessons from Success and Failure

In 2017, LinkedIn introduced its Top 50 Startups to Watch list, highlighting the rising stars in various industries. Many of these companies, like Airbnb, Uber and Slack, have captured the imagination of entrepreneurs and job seekers alike. These high-flyers receive the bulk of attention, inspiring admiration for their innovative products and rapid growth. But while we all cheer for the Airbnbs of the world, there’s often little focus on the other side of the coin—the startups that stumble and fail. And yet, it’s in these failures that the most valuable lessons lie.

Failure is an intrinsic part of the startup ecosystem. Not every company will become the next unicorn, and the reality is that most won’t. For every success story, there are countless others that never quite make it. Startups like WeWork and Katerra are reminders that no amount of funding or hype can replace the need for a sustainable business model and the ability to adapt in changing markets.

WeWork, once worth $47 billion, is a prime example of what happens when a company grows too fast, prioritizing expansion over operational stability. Similarly, Katerra sought to revolutionize construction but overreached, leading to its eventual bankruptcy. Both of these companies had brilliant ideas, but they failed to execute on a sustainable model, which highlights the importance of balancing ambition with pragmatism.

Learning from Failure: The Untold Story

While the success stories inspire, the failures often provide more actionable insights. Research shows that around 90% of startups fail. The most common reasons include poor product-market fit, lack of funding, and management missteps. Even for the startups that do succeed, it can take 3 to 5 years to turn a profit, and the path is rarely a straight line.

Statistics reveal that of all startups:

• 20% fail within the first year.

• 50% fail by the fifth year.

• By the 10-year mark, only about 30% of startups are still in business.

The numbers may seem daunting, but they underline a critical truth: resilience and adaptability are as important as innovation. The ability to learn from missteps—whether it’s scaling too quickly like WeWork or losing focus on profitability like Katerra—can often determine whether a startup thrives or folds.

Focusing on Sustainability, Not Just Speed

For startups that wish to succeed, the lessons from these failures are clear: sustainability and long-term profitability must be part of the plan from day one. In the rush to scale and capture market share, it’s easy to lose sight of the fundamentals—ensuring a product meets a real need, managing cash flow, and building a business that can withstand industry shifts.

The spotlight may shine brightest on the unicorns like Airbnb and Slack, but the startups that quietly learn from their mistakes—and the mistakes of others—are often the ones that find long-term success. Instead of focusing only on rapid growth, these companies build solid foundations, ensuring they can endure the challenges of an ever-competitive market.

In the end, business success is a marathon, not a sprint, and every entrepreneur should balance ambition with the adaptability to pivot when needed. Learning from the cautionary tales of failed startups can be just as valuable—if not more so—than chasing the next headline-grabbing success.

Overheard at coffee ☕️

There are about 10.2 million U.S. “digital nomads” out there—those brave souls who said goodbye to the cubicle and hello to a passport, working remotely while hopping from country to country. And guess who’s leading the charge? Millennials, making up 38% of the crew. So next time you see someone typing away on a laptop at a beach café in Bali, odds are they’re part of this ever-growing nomad nation. Because why settle for an office when you can have Wi-Fi and a killer sunset?

🚀 Go West … and go nuclear! Google just inked a deal with nuclear company Kairos Power to help power its ever-expanding data center empire. As tech giants grapple with the energy-guzzling needs of AI and cloud computing, many are turning to nuclear power to keep the lights—and servers—on.

Kairos Power’s Small Modular Reactors (SMRs) are the new kids on the nuclear block, offering scalable and (dare we say) more affordable energy solutions. Google expects the first reactors to start cranking out power by 2030, with a solid 500 megawatts ready to feed the grid.

Why the rush to nuclear? Data centers, especially in the power-hungry Western U.S., are putting a serious strain on the electrical grid. According to the Oregon Capital Chronicle, these centers need an insane amount of juice to run and cool their servers. And with extreme weather and energy supply chain issues thrown into the mix, it’s becoming a hot mess. Oregon alone has over 100 data centers, with the likes of Amazon, Apple, and Google all plotting their next energy-hungry expansion.

In short: tech’s energy demand is skyrocketing, and it looks like nuclear is becoming the superhero to save the day.

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🔥 Hot Jobs - $1K Referral Fee

Recruiting Fails: The other day, I was pumped when the perfect resume landed in my inbox for a tough-to-fill Senior Software Engineer role. It looked like a unicorn—so much so that I immediately shot it over to the hiring manager, excited to share who I was speaking with next.

Fast forward to the video interview. Within minutes, things got weird. The guy struggled with basic answers, his resume didn’t match his LinkedIn, and—wait for it—he hung up halfway through the interview. Why? Because he knew I’d caught on: he was a fraud, plain and simple.

Fake candidates are out here scamming their way through the process, looking for easy work or to swipe your info. And honestly, this issue isn’t going away anytime soon. That’s why I’m gearing up to either buy or build software to block these fakes before they even get a foot in the door. Because, seriously, who has time for this nonsense?

Do you have recruiting Fail Stories? Reply with your epic fails – we'll feature them. Own your blunders, embrace vulnerability, and let's all level up together.

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