While getting Venture Capital may seem like a good idea, you should be aware of the stats and they aren't pretty. Only about 12% of VC investments earn VCs the desired rate of return so chances are 88% that if you get VC funding you won't end up being happy. But don't believe me, check out the stats.

1. 7 Reasons You May Not Want
Venture Capital
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2. First for the good news
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3. 1500 companies get venture
capital financing every year
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4. 350 VC Backed companies are
sold every year
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5. And 50 go public
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Now for the bad news

7. Of the 350 that are sold, only
26% get a return better than 4
times
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8. That means that only 12% of VC
backed deals are successful.
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9. As a result, the VC industry
performs worse than any other
major index.
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10. And since returns are
concentrated in a few firms
about 85% of VCs lose money
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11. But while the VC firms lose
money, their partners still make
excellent money.
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12. The amount you raise in Seed
and A rounds is inversely
correlated with success
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13. Stats show that you’re not any
better off starting a company
and getting VC money that you
are getting a regular job.
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14. So where does it work
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15. California startups raise 53% of
the VC rounds raised
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16. And they get 60% of the exits
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17. But VC financing outside
California is slowing to a crawl
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18. The top 10 funds in 2002 got 17%
of the capital and in 2012 got
48% of the capital.
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19. They have a 14% lower cost of
capital.
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20. And they have a portfolio of all
the top performers
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21. So venture capital works in
California
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22. But not well elsewhere
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23. material minds
Helping individuals,
managers, and
entrepreneurs improve
strategy execution.
Charles Plant
416 458 4850
cplant (at)
materialminds.com
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