Most things fail. Ninety percent of everything is crap! Why am I optimistic about this? Because 10 percent kind of works.”
Who said it: Dave McClure, Founding Partner 500Startups
In Context: At a recent tech VC event in Denver, Dave Mclure, delivered a “bracing message” to several hundred entrepreneurs, one that showed his penchant for numbers and ratios. For example, he expects 80% of the startups he’s backing to fail or not return an “appreciable exit”, and that only 20% of those that get startup money (less than USD 25K) will actually make it to the seed stage and raise between USD 25K to USD 1 mn, but he also sees failing as a necessary rite of passage.
He’s optimistic about Internet-related tech entrepreneurialism, pointing out it is much easier than it used to be to start up a web or app venture, there are more users and potential customers than ever, early stage money is more accessible thanks to new online PE platforms, specifically AngelList and infrastructure costs are shrinking. He also said that the “playing field has never been more level for doing startups anywhere in the word” and that the chances for success outside Silicon Valley have improved dramatically, to the point that they have the same potential for growth as a Silicon Valley dotcom had during the Bubble years.
Where we found it: xConomy