We’ve written a few things recently about funding and venture capital (here and here). It often seems you can’t talk about startups without discussing how company X raised Y in round Z. Sometimes, this is a good way to gauge the future or current success of a startup – sometimes it is not. If you’re an entrepreneur this can be a crucial topic. Here are a few important things to consider when considering the issue of venture capital:
- VC is actually a small way entrepreneurs fund their companies. From 1981-2005 .11% of new companies received VC. In the hay day of VC investing, 1996-2000, this number was double that…at .22%.
- Not all VC-backed projects go public or become highly profitable. The nature of venture capital, and entrepreneurship to a degree, is that you are more likely to fail than to win big. One study found three out of four VC-backed entrepreneurs get no return while one in four receives an average of $5.8 million upon exit.
To read the full, original article click on this link: Growthology: Venture Capital: A Few Things to Remember
