In the past few years, the Indian startup ecosystem has witnessed the\u00a0unprecedented glory of growth along with innovation and major investments. However, at the same time, even million-dollar fundings and years of strategic planning haven't been able to save several startups from dying\u00a0a premature death.\r\n\r\nIn 2016, the major reason behind a large number of startup shutdowns was cited to be lack of funding. However, in 2107,\u00a0Inc42 analysed that\u00a0the\u00a0lack of market demand was the primary reason for startup shutdowns.\r\n\r\nA recent CB Insights report said that 42% of all startups that start out enthusiastically thinking they are going to change the world are actually not needed at all. Thus result: a high-level of startup shutdowns.\r\n\r\nAnother recent report by Nasscom further said that around 25%\u00a0of Indian startups found themselves in the valley of death this year due to failure in raising follow-on funding rounds mostly beyond Pre-Series A.\r\n\r\nOther factors such as failure to scale, a weak business model, high cash burn, as well as external factors such as GST rollout and the continued impact of demonetisation also led to startup shutdowns in some industries according to the Nasscom 2017 report for Indian startups.\r\n\r\nIn\u00a0Inc42\u2019s 21st episode of Ask Me Anything (AMA), we hosted Siddharth Talwar, co-founder and partner of Venture capital firm Lightbox.\r\n\r\nTalwar has been part of the Indian startup ecosystem for nearly two decades now and has hands-on-experience of being an entrepreneur and an investor supporting consumer technology startups.\r\n\r\n\r\n\r\nIn the AMA,\u00a0we asked Sid Talwar his perspective on the reasons why startups fail in India.\r\n\r\nTalwar believes that for a startup to succeed, the founder\/s need to believe in their idea\/plan and build on it. He also identifies the need for flexibility and quick decision-making as the way for startups to go forward.\r\n\r\n\u201cI think if you try to understand market superficially, you will fail. India is complex with different layers and if you don\u2019t study the market, you are not going to understand it. Every layer brings different element for the understanding of what the problem is, but it's not so simple,\u201d Talwar explains.\r\n\r\nTalwar, who's insights are drawn from his years of experience in the field, believes that there are many factors \u2014 understanding the problem, understanding why the problem is there, and understanding why this is the solution to the problem that contribute to the success of a startup. There is, however, no one reason for failure.\r\n\r\nStay tuned for our next article on Ask Me Anything with Sid Talwar!