drrogera

The time span cited in that study was an aberration; anyone with an idea was getting money thrown at them. There is also a great big chasm between "still in existence" and success. If you sell-off assets for the benefit of creditors your company can still exist but it would be hard to call that a success.

The numbers I hear from my VC friends is that around 50% are out of business after the 2nd year. They see more of teh picture than I do so I trust they are better qualified to make teh call.

My opinion is that more companies fail because of incompetence than insufficient funding. If you really have a great idea you can make it work. The trouble is that most make some big mistake and spoil the well.

I think starting a company is one of the most exhilarating things you can do. I wish more people would try it. I also wish more of them would try to understand the basics of business operations. This is where I disagree with Paul. I have seen too many $100 million ideas ruined by founders mistakes. Too often the time has past before they can regain their opportunity.

I still encourage everyone to give it their best shot. It's a great ride, up or down.