TNN(This story originally appeared in 
on Jul 23, 2016)
By: Rachel Chitra & Ranjani Ayyar on Jul 23, 2016)CHENNAI: Thinking of joining the startup bandwagon? There is half a chance that you will fail if you enter sectors like logistics, ecommerce, food tech and analytics as there too many players, with a sizeable number of them going bust.
As many as 997 (43.7%) of 2,281 startups have had to down their shutters since June 2014, shows latest data with market research firm Xeler8. Companies in the banking, financial services and insurance (BFSI) space have turned out to be safe to invest in. Fintech is finding more favour with angel investors and VCs, followed by healthtech and online recruitment.
"Augmented reality (AR) and virtual reality (VR) saw many failures last year. We've also spotted this trend of a few startups who've failed on one front trying their hands in a related field. Some startups who failed when they dabbed their hands in logistics and ecommerce are now taking to SaaS (software as a service) and analytics given their tech background," says Rishabh Lawania, founder, Xeler8, a startup tracker.
A majority of failed entrepreneurs join corporate jobs or other startups, while only a few -22-24%-launch another venture. The average age of founders/entrepreneurs who ran the show at these failed startups is 27.3 years.
The average age of these failed ventures came out to be 11.5 months.
