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.