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Why 90% of Developer SaaS Tools Fail in Year Two (Analysis of 50+ Failed Startups)

  • A developer tools startup recently announced its closure despite positive feedback from users and significant funding.
  • Many developer tools startups fail to sustain their businesses despite having products loved by engineers.
  • An analysis of 50+ failed developer tool startups revealed that technical quality did not guarantee business success.
  • The main reasons for failure were identified as business model and go-to-market challenges.
  • These companies typically faced challenges around the 18–24 month mark, hindering their growth and sustainability.

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