Most Startups Die of Suicide
Internal mistakes kill more startups than external competition or market forces.
Explanation
Paul Graham's observation: startups rarely die because competitors beat them or markets disappear. They die from internal problems: co-founder conflicts, running out of money, building what nobody wants, giving up too early. This means most startup death is preventable by avoiding common internal mistakes.
Real-World Example
Common suicide causes: co-founders breaking up over equity or role disputes, running out of money without trying to fundraise, building for months without talking to users, giving up after first product version fails, hiring too fast and burning through cash, focusing on competitors instead of customers.
How to Apply
Focus on internal health: clear co-founder agreements, regular user feedback, careful cash management, realistic timelines. When facing challenges, ask: 'Is this an external threat or internal dysfunction?' Most problems have internal solutions. Regularly assess: team dynamics, cash runway, user engagement, market understanding. Fix internal issues before they become fatal.