Startups have a high failure rate. What percentage fails?

Out of 100 startups/investments:

-75 will fail or turn into a lifestyle business within 2 years 

-25 will remain on the venture track after 2 years

Of those 25:

-half will die or turn into a lifestyle business between years 2-4

-15 will remain on the venture track for the long haul

Of those 15:

-10 will fade out

-5 will be a win with varying degrees of success

It will be difficult to choose the top 5, so you must take a portfolio approach to startup investing and diversify across several deals.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.