Jokes apart, even startups with a good product idea fail because they couldn’t raise money. A true startup is one that goes deep into the problem, deeper than anyone else has gone and therefore becomes the smartest problem solver in that area.
And for going deep, you need to have the right resources (and therefore money). This important time for young companies is why the early-stage investing ecosystem is critical.
Usually, angel investors (and syndicates) fund these companies and venture capital funds have started seed funds to get early access to companies. There are new options which have emerged, such as Equity Crowdfunding.
Equity Crowdfunding is a way in which a crowd (i.e., many individual investors) can invest in a previously inaccessible asset class.