11Erik Sander: EGN6640Most tech. start‐ups fail in the first 5 years80% of failures due to under capitalization, marketing & management‐not the technologyPoor timing, fundraising, choice of expendituresOverestimating market demand; Underestimating costsFocus on tech. rather than business/market developmentEach technology development stage costs 2‐10 times as much asprevious stageFinancing (General Stats)First 1M scraped together; Next $1‐20M from sales/investmentsLess than 1/5th of companies with 40%+ annual growth haveVCOf 100 business plans reviewed by aVC‐1‐2 will get a callOf 10 presentations‐1 will get financingOf 10 financed – 1‐2 hit, 3‐5 living dead, the rest fail2Erik Sander: EGN6640
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