Three out of four VC-backed start-ups fail,says Shikhar Ghosh a researcher from the Harvard Business School.
"VCs bury their dead quietly","says Ghosh.The commonly acepted rule of thiumb for start-ups is that,out of ten,three or four fail completely,three or four return the binvestment and one or two produce big profits.
According to Ghosh 30-40%fail completely-meaning that the investors lose all their money-and 95%fail in that that they don't meet the original revenue projections.
Ghosh based his findings on 2,000 companies that received VC funding between 2000 and 2010.
Source:
http://www.electronicsweekly.com/Articles/2012/09/25/54637/three-quarters-of-vc-backed-start-ups-fail.htm
