78% of investors strongly or moderately associate weak domains with a risk of failure
Overall, 94% of investors correlate weaker domains with a higher risk of failure for startups
Objective: Choosing a domain is a key early step for startups seeking investment, yet many entrepreneurs, with a focus on the practicalities of a strong product, overlook the importance of brandability. To help founders direct their energies as well as budgets, we asked investors how they associate domain strength, including brandability, with the risk of failure for startups.
Question:
How strongly do you associate weaker or less brandable domains with a higher risk of startup failure?
Strongly associated
Moderately associated
Slightly associated
Not at all associated
Audience:
Venture capitalists, private equity investors, and angel investors.
Overall Results
78% of investors strongly or moderately associate weak domains with a risk of failure
Overall, 94% of investors correlate weaker domains with a higher risk of failure for startups
How strongly do you associate weaker or less brandable domains with a higher risk of startup failure?
Conclusion
An overwhelming majority of investors associate a weaker or less brandable domain with a higher risk of startup failure. A poor domain, whether it’s longer, less emotionally impactful or linked with an obscure extension, hurts your impression with both investors and consumers. Founders should launch with the strongest domain they can afford, after a thorough process of brainstorming and validation.
If you’re interested in digging deeper into our findings, or asking your own questions on domain choice and branding topics, contact thom@atomradar.com to learn more.
Business investors, including VCs and private equity investors, are key stakeholders in early-stage startups, and demonstrating strength and ambition to...