The founder of
Goodmail Systems Daniel · Dreman (Tencent technology plan)
technology news (Tong Yun) September 24th Beijing time news, foreign media recently published article said, according to a latest research report shows that behind the startup surface scenery, actually on the market in the United States backed by venture capital venture company has about 3/4 ultimately unable to return capital to investors. The article points out that venture capitalists "bury the dead bodies of them very quietly" because they emphasize success, but don’t talk about failure".
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in the eyes of outsiders, things seem so simple. An entrepreneur has a hot technology, get a sum of venture capital financing, then you will become a billionaire in the twenties.
but there is now evidence that venture capital backed start-ups are far more likely to fail than the industry commonly cited. Shikhar, a senior lecturer at Harvard Business School, recently released a study that said about 3/4 of venture capital backed venture capital firms in the U.S. market could not return capital to investors in the end of the year by about $.
compares the data with the data that venture capitalists have said, and they see the difference. The usual argument is that in ten companies only three or four will be completely closed, another three or four will return the original investment to investors, there are one or two venture capitalists will give great rewards. According to the National Association of venture capital (National Venture Capital) estimates, only 25% to 30% of venture capital support startups will collapse.
Ghosh this difference is partly attributed to the lack of in-depth research on the collapse of start-up companies. "We just saw a more glorious side of the entrepreneurial process." He said.
‘s findings are based on data from more than 2 thousand companies that had acquired venture capital between 2004 and 2010, typically at least $1 million. In addition, he also carried out combing the assets of Vc firm, and practitioners of the start-up companies to communicate. The results were similar when he examined data from venture capital firms between 2000 and 2010.
venture capitalists "bury their bodies in a very quiet way," Ghosh said. "They emphasize success, but they don’t talk about failure."
, however, is a different definition of failure. If failure means the liquidation of all assets, the investor loses all capital