Venture Capital

What percentage of Startups Fail?

By July 11, 2017 No Comments

I have been anecdotally using the statistic that: “Nine out of 10 startups fail.” The problem? It’s not true.

Cambridge Associates, a global investment firm based in Boston, tracked the performance of venture investments in 27,259 startups between 1990 and 2010. Its research reveals that the real percentage of venture-backed startups that fail—as defined by companies that provide a 1X return or less to investors—has not risen above 60% since 2001. Even amid the dotcom bust of 2000, the failure rate topped out at 79%.

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