BRAVE: Why Startups Fail: Power Laws, Failure Patterns & Being Too Early - E664

Youtube:https://youtu.be/LvUH1St6Y6E

Spotify:https://open.spotify.com/episode/2PDVDmrwDuIO12NcGQKb8n?si=bb8c03054cc144fc

"Founders can also choose to build new companies, so I call them rebound, revenge, and rebirth. Rebound founders are comfortable with the identity of being a founder, so they move to the next idea as quickly as possible without thinking it through. It is like a rebound relationship right after a breakup. They build a rebound startup because as long as they are doing a startup, they still have an identity and can still fundraise. There are also revenge startups. For example, a founder was fired from a benefits platform by the board and then went on to build a direct competitor. The original company was a unicorn and later collapsed, while the new company became a billion-dollar all-in-one HR platform." - Jeremy Au, Host of BRAVE Southeast Asia Tech Podcast

"All startups are bets. They are bets on the future. They are bets that the future will become reality. They are bets that this company wins the race. They are bets that regulators will not regulate the company out of existence. In each round, investors pay more to find out what the bet really is. The real question is whether the risk taken matches the reward. From both the investor and founder perspective, founders can fail, but they are pioneers of a new world, and they teach us what can work and what cannot work." - Jeremy Au, Host of BRAVE Southeast Asia Tech Podcast

"AI robots are back. They may have been too early for their time because hardware is now cheaper, indoor sensors are more available, facial recognition middleware is more powerful, and language is now powered by ChatGPT. AI robots are back for social robots. Jibo is a great example of this. They failed, but they were also ahead of their time, a pioneer of social robots. Today, we already know there will be AI-powered teddy bears." - Jeremy Au, Host of BRAVE Southeast Asia Tech Podcast

Jeremy Au breaks down why most startups fail even after raising capital and why failure is often misunderstood by founders, investors, and the media. Drawing from venture data and real startup case studies, the discussion unpacks common failure patterns, the role of timing and macro forces, and why economic failure does not always mean bad judgment. The episode reframes failure as part of innovation, while staying honest about incentives, power laws, and investor reality.