Ansyr Technology, Seattle's "Most Promising Startup," failed due to well-known reasons
Why Seattle’s Most Promising Startup Failed
Over 80% of all high-tech companies fail. The reasons are presumably well known.
At the Early Stage Investment Forum in Seattle, 250 accredited investors and venture capitalists voted Ansyr Technology as “the region’s most promising technology startup.”
This accolade was based on both market and company advantages including: a thriving new ecosystem called mobile computing, partnerships with both Microsoft and Adobe, and plenty of money provided by local investors.
The Reasons High-Tech Companies Fail
Many of the actual reasons high-tech companies fail are not captured in statistical surveys. The traditional causes of failure were not present at Ansyr Technology and the company was well prepared for most of them.
Despite these significant advantages, Ansyr Technology failed because management neglected the most important element of long-term success: staying aligned with the motivational characteristics of customers as they evolve.
One example of customer misalignment at Ansyr was the mis-match between the selling skills and techniques of the sales team, and the requirements of early customers. Lack of customer alignment is actually the primary reason high-tech companies fail.
Avoid Startup Failure
Please visit the Customer Alignment Infographic on this website to see how customer characteristics change in the areas of: customer characteristics, buyer motivation, product expectations, sales channels, positioning messages and cost-benefit ratio.