This is a very expensive thing. First of all, the upfront investment in hardware is a big expense. Once your capital chain is cut off, it will basically go bankrupt. Many internet companies get the first round of financing, and then get stuck when they wait for the second money.

My friend's previous company was like this. Half of the products are out of money, and even the employees' salaries can't be paid. The bank refused to lend, so it was difficult to find a financing party. As a result, people are required to make products before investing money, but as for employees, if they don't pay their wages, they won't start working. After all, the development of this product will take two or three months, but the company has been in arrears with employees' wages for several months. So who wants to go on like this? As a result, what about their company?

There are also some companies that have made products, but they have no money to do marketing and there is no way to occupy the market quickly. In this way, some people will develop the corresponding products and will naturally be occupied. And if some big companies see the business opportunities of your products, many will research and develop them, and then use their own resources or channels to promote them. Small companies naturally find it difficult to survive.

Internet startups generally rise quickly, but they fall down quickly, so the mobility of IT practitioners is still relatively large. Moreover, many entrepreneurs may be from technical backgrounds, have inaccurate judgments on the market, or have problems with product positioning, resulting in products coming out, but the market acceptance is not good, so naturally they cannot survive for a long time.