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His reasoning is similar to saying that since out of millions of sperm only one will fertilize the egg, the chance of having a baby is 1 in a million. For smar
by tlb 18y ago
His reasoning is similar to saying that since out of millions of sperm only one will fertilize the egg, the chance of having a baby is 1 in a million.
For smart people seriously trying to build something people want where VC funding makes sense, I'm sure the chances of getting funded are above 50% and the chances of succeeding are above 50%.
- jag 18y agouh, if the chances for succeeding were above 50% (of course depends on your definition for success), then banks would fund startups... it's way lower. being an investor in a few venture firms, i have seen the results, and the vast majority of startups in which they invest fail.
- tlb 18y agoGood VC firms generate positive returns from more than half of their companies. Even the average VC generates positive returns from 1/3. This is from a large sample: http://www.markpeterdavis.com/getventure/2008/09/vc-backed-start.html http://www.markpeterdavis.com/getventure/2008/09/vc-backed-s... Bad VC firms, on the other hand, can achieve 100% failure rate. It's not some throw of the dice, it's about (a) choosing the right investments, and (b) making them succeed. If they're telling you that it's normal for the vast majority of their investments to fail, find a better place for your money (and don't taken money from them either.)