Escape from the four phases of the death valley curve

According to recent estimates, around 90% of startups fail. So, how do successful companies navigate the crucial - but tricky - initial phase, known as the 'death valley curve'?...

We have identified four phases of the death valley curve and created a matrix on which entrepreneurs can place their business to identify the key challenges going forward.

Shape-ups: These new enterprises have already reached their growth objectives but have failed to maintain a well-functioning business model. These enterprises need to reinvent their business models and themselves as entrepreneurs.


Stand-ups: Stand-ups have momentarily left the valley of death, but that doesn't mean that their troubles are over. These enterprises need to protect their business models - both today and in the future.

Startups: These new ventures have an ambitious growth target, but have yet to find a well-functioning business model. The strategic challenge for startups is to find the right business model.

Scale-ups: After a startup has created a suitable business model, it may choose to scale up in volume. Scale-ups need to fund expansion and limit innovation in their quest to live up to the projected growth expectations....

From 'An Entrepreneur's Guide to Surviving the 'Death Valley Curve'', Harvard Business Review