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73.6% of all Statistics are Made Up

Both Sides of the Table

Often when they do I throw out my favorite statistic: 73.6% of all statistics are made up. But all of the data projections were so different so I decided to call some of the research companies and ask how they derived their data. They got the data feed either from the research company or from the investment bank.

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What are the odds of your startup’s success?

Berkonomics

Well, the numbers don’t lie, even if there are several sources of these statistics. Starting a company is HARD – in so many ways. Here I am a professional investor in early-stage companies, and I attempt to find those with the greatest chance of success and growth in value over time. Starting up a new company is risky.

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If you must lease an office, make it a short one!

Berkonomics

It is statistically true that at least half of the young companies funded by angel or venture investors will not survive three years from funding to demise, and more than that percentage will die with two years if not well financed. Or honoring a personal guarantee if the company cannot pay. Avoid long-term commitments!

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Everything you do adds or reduces company value

Berkonomics

Minor decisions, such as replacing employees who have left the company or replacing equipment needing updating, are usually considered operational in nature, and unless the business is changing direction, not relevant to this test. Let’s analyze the effect of a potential acquisition upon the value of your company.

Company 120
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7 Ways Growing Companies Drift From Startup Thinking

Startup Professionals Musings

In fact, even within Fortune 100 companies, almost 90 percent have encountered growth stalls or flirted with failure, or worse, in the last 50 years. No company can afford to lose the agility, flexibility, and innovation of a startup. Companies follow each other rather than the market. Morgan (chemical manufacturing).

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6 Ways To Get Credible Data To Support A New Venture

Startup Professionals Musings

Use your favorite search engine and keywords describing your solution to find online sales reports, trade association statistics, and online newsletters with the latest statistics. Peruse company reports from your business domain. Modern libraries are still worth a visit. Explore municipal development resources.

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Is it YOU or your great plan?

Berkonomics

Here’s a test: Several weeks ago, we published statistics of start-up and company failures. If you read that analysis of statistics for startups and early-stage businesses, you have learned the truth that at least half of the businesses backed by professional early-stage investors will die within three years or less.