The 90%
A crypto-based social experiment to address the high startup failure rate
This 5 minute video is a summary of this intropaper
With the abundance of educational resources online, NoCode/visual programming tools making it significantly easier to build digital products faster than ever before, and a plethora of platforms used to increase distribution and scalability, it's an incredibly accessible time period in history for creating a startup venture.
However, billions of dollars and thousands of hours are spent each year to support hopeful startup founders. Unfortunately, according to the Startup Genome, 90% of them fail; mostly due to not having access to the necessary knowledge and/or resources to properly execute their ideas. Going deeper into this problem of barriers to access, our research and experience has led us to the following conclusions as to why this may be happening:
  • Fragmented and exclusive entrepreneurship ecosystems
  • The lack of shared entrepreneurship data
  • The lack of experiential entrepreneurship education
  • The reluctance to fully embrace cooperation and collaboration as a primary business strategy
These obstacles affect founders of color unproportionally as many come from families with a net worth less than $2,000 and are not connected to networks that have economic resources. To highlight this economic inequity, according to ITIF, the number of high-growth tech startups rose 47% and created 1.5 million jobs since 2010. Comparatively, businesses owned by women of color have increased 322%, also representing more than 1.5 million jobs; however, they only receive less than 1% of venture funding
The two main ways to launch a startup are (1) to either take a self-funded, and usually under-resourced route; according to Gallup, 77% of startups use personal savings for their initial capital, or (2) take venture funding, which usually limits the autonomy of the founders and puts an acquisition or IPO as the highest business priority; according to Entrepreneur Magazine, only .05% of startups get VC funding.
With 9 out of 10 startups going under within the first five years of their existence, this excessive misfortune is proving that alternative options are needed for entrepreneurs to launch ventures in a way that reduces their risk of failure. There is a multitude of innovation within a variety of industries, but little to none within the practice of entrepreneurship itself.
New business creation is crucial for economies as they are the main drivers of technological progress and economic growth and prosperity. So it’s safe to say that giving entrepreneurs the help they need has a good return on investment for society as a whole.
The economic challenges created by the Covid-19 Pandemic have sparked a surge in people starting their own businesses, with the Census Bureau reporting the number of applications for new enterprises in 2020 saw a 95% increase compared to 2019. This is an opportune time for experimenting with new approaches to launch a startup.
So what is another path that the founders of the future can take?
What’s an alternative way to attract the needed funding to go full-time and increase the chances of launching a successful startup?
This proposal will introduce the vision we have for the future of entrepreneurship and the Innovation Sports League that we are building to help that outlook become a reality.
Disclaimer: We are not attempting to downplay the bootstrapped and VC-funded paths. This document is about shedding light on another option to launch startup ventures.
Last modified 1mo ago
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