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The article assumes failure as more likely than not, but that’s not what the numbers say. I took a new ventures college class focusing on high tech startups an
by dangus 3y ago
The article assumes failure as more likely than not, but that’s not what the numbers say.
I took a new ventures college class focusing on high tech startups and the statistics were more like: most startups get acquired, some IPO, and a small percentage fail.
Software is one of the most profitable industries out there. Just look up margins compared to other industries.
Now, I realize the article is talking about projects and not companies, but what’s the point of that?
Example: A typical car company loses 100% of the money it puts into their infotainment system software. But they make a bunch of money when they sell the car.
- bogle 3y agoI think your ventures college class wasn't taught by someone with real experience. The rule of thumb is more like a 50% failure rate each year. Software may buck that trend. Here's some data that shows just 1/50th will exit in 5 years [1]. [1] (https://www.beauhurst.com/blog/startup-fail-scale-exit/ https://www.beauhurst.com/blog/startup-fail-scale-exit/)
- fakedang 3y agoLol, more like 90% fail (including acquihired), 9% get acquired, and 1% IPO.