Among so - called growth companies, the failure rate is even higher, according to a 2012 Harvard Business School study: About three - quarters of startups with
venture backing fail.
Not exact matches
The National
Venture Capital Association estimates that only 20 percent (or less) of venture - backed companies produce a significant return, 40 percent achieve moderate success and the res
Venture Capital Association estimates that only 20 percent (or less) of
venture - backed companies produce a significant return, 40 percent achieve moderate success and the res
venture -
backed companies produce a significant return, 40 percent achieve moderate success and the rest
fail.
It may take a while to reach that milestone, as most
venture -
backed startups
fail (of the 33 startups that presented at the 2016 Xoogler demo day, fewer than two - thirds still have an active web presence).
«Entrepreneurs need to recognize that even 75 percent of
venture -
backed firms
fail completely,» she says.
The fact that you are more likely to
fail is a fact of life for
venture -
backed companies, it is not an expectation for the VCs making the investment.
SpoonRocket, a
venture -
backed delivery startup in Berkeley, Calif., closed last month after getting squeezed out by competitors and
failing to raise additional funding.
Rhode Island is on the hook for $ 113 mln of debt incurred by a
failed videogame
venture it
backed.
If my test - market
venture failed and I sold just twenty copies, for instance, I would, however, be out the time, effort, and money I put into
backing my own publishing business experiment.
Some
venture capital
backed firms will
fail (here and here).
It should be noted that, aside from all the usual suspects from these
failed ventures, and who are now involved in Star Citizen, John Schimmel who used to be «President of production» at Ascendant, is also part of the Star Citizen project; along with Ortwin Freyemuth, the Roberts brothers, the Elms brothers — and all their cohorts (some of them, such as Tony Zurovek and Eric Peterson, from
back in the day) enrolled in their friends and families program.
Vinod Khosla & Khosla
Ventures, and Al Gore & Kleiner Perkins Caufield & Byers are
venture capitalists responsible for a lot of
failed ventures, laid off workers and untold sums of government money taken and never paid
back - but pay no mind... Mitt Romney is the evil vulture capitalist that likes firing people!
In other words,
venture capitalists, who flourish or
fail on their capacity to succeed with a decent (though usually small) proportion of projects they
back would not support it.