Bootstrapping vs. Venture Funding Statistics: How many large companies (eg Fortune 500) ever received venture financing? What percentage of venture funded companies succeed (or fail)? What percentage of startups seeking venture financing ever receive it?

Many well known companies today have received private equity funding at some point in their history – about a third of them. The number would be higher, but many of today’s largest companies are older than the venture capital industry. Well known companies that received venture capital include Google, Apple, Amazon.com and Facebook.

Getting venture financing doesn’t mean that your startup will be successful. It’s hard to give a percentage because it varies over the course of an economical cycle, but it’s safe to say that between 20 to 50 percent of venture funded companies fail (the failure rate in hyped sectors are at the higher end of the range), and only about 10-15% succeed; the rest survive but are not great successes. Most investors would agree that most of the ventures they back are flawed, perhaps as many of two thirds of venture funded companies have some major drawback.

Venture backed companies are usually able to grow much faster than non-funded companies, not only because they have more resources, but also because being venture-funded gives a company a certain cachet, which can help a company in building confidence among customers and lenders.

Less than 1% of startups who seek venture funding ever receive it.  Today it’s harder than ever because many venture capital firms are focusing on “growth companies”, not start-ups. If you are trying to raise money for a start-up, it might be better to speak to angel investors.

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One Response to “Bootstrapping vs. Venture Funding Statistics: How many large companies (eg Fortune 500) ever received venture financing? What percentage of venture funded companies succeed (or fail)? What percentage of startups seeking venture financing ever receive it?”

  1. S.S.Ghosh says:

    New-Media is emerging to replace the Print Media in the field of advertisement (matrimonial) but larger population is accustomed in using Newspaper. Print Media has some advantages over New Media. We visualize and keeping in view both the end, we stated our venture as a Media fusion service. As a test run, limiting the service confined to a certain section of the Indian society, we found our approach is very correct and the Indian society perhaps be waiting for the service.
    We spread our service center at various population pockets and by giving them commission we are utilizing their local influence for us, it is an unique as well as very dynamic business proposition.
    In the beginning we were providing Free service, but now we added paid services which is quite accepted by the society, though we are facing problem in collecting payment.
    While we are trying to expand our business we are facing financial constrain. What so ever resource we have that has already been utilized as pre-operative expenses, now by using my time and expertise we are running the project.
    We do not have enough fund to afford good business Manager and good accountant to visualize my business proposition and to make its revenue model for the purpose of Angle Funding.

    If anyone have any suggestion, pl suggest

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