Don't Take VC Funding – It Will Destroy Your Company

Re:Don't Take VC Funding – It Will Destroy Your Company by marcosdumay on Sunday July 09, 2023 @02:20PM (#36657306)

Those figures also do not account for selling all of the company's property with some profit and closing it down; the equivalent of an acquihire for small and medium companies is counted as failure. Running it successfully for a couple of years and changing your mind is counted as a failure too.

I don't have a link on hand, but I've seen studies from people that counted how many business actually closed due to money problems. The actual rate of non-problem business after 5 years is close to 80%.

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Re:Don't Take VC Funding – It Will Destroy Your Company by jacquesm on Sunday July 09, 2023 @02:53PM (#36657632)

I would expect it to be close to 100%. The difference between the 80% and the 100% is the ones that grow in spite of and sometimes because of their problems. Every business will run into trouble, sooner or later. In fact I don't recall a year in the past decade without some kind of crisis that needed fixing. Some self inflicted, some just circumstance and some outside malice. Never a dull moment if you run a small company.

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Re:Don't Take VC Funding – It Will Destroy Your Company by DeathArrow on Sunday July 09, 2023 @04:15PM (#36658424)

>Every business will run into trouble, sooner or later.

Even large businesses that have comfortable cushions and safety nets?

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Re:Don't Take VC Funding – It Will Destroy Your Company by jacquesm on Sunday July 09, 2023 @06:36PM (#36659702)

Yes. But they are better positioned to deal with it and will likely survive. But even the IBMs, HPs and Boeings of this world are not immune.

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