This paper aimed at studying the main factors why most startups don’t succeed, identify and analyze the challenges for leaders have to face in building start-ups, and create solutions to minimize the risk of failure. The datasets were collected by observing from certain institutions and the research selects five representative start ups. We identify startups failure by using the SHELL methodology. The findings represent From 5 representative start ups we can see that the main failure of startups is lack or over of funding and do not fulfill market needs. To minimize risks in the early stages, businesses should (1) focus on delivering value for cash, (2) aligning skills with the product or service you intend to sell, (3) keeping a stream of income, (4) surrounding yourself with mentors, and (5) avoid unnecessary expenses.