Only half of Bubble-era companies out of business
While people typically guess that 90 percent of dot-com companies failed, the reality is that a random sample of all dot-coms that received venture capital financing in 1999 showed that about half (48 percent) were still in business five years later, write Tim Laseter of the University of Virginia’s business school and David Kirsch and Brent Goldfarb of the University of Maryland. (Via New York Times)
Here’s their study. They conclude: More, smaller bets can make technology booms more productive and enduring. More, smaller bets should have been made during the boom, and the same should happen now.
All fine in theory. Practice is another matter.
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About the Author, Matt Marshall
Matt launched VentureBeat in September of 2006, with the realization that no one else was covering the entrepreneurial and tech innovation scene with the velocity or depth that he was. Prior to founding VentureBeat, he covered venture capital for the San Jose Mercury News from 2001 to 2006. In 2002, Matt was awarded "Journalist of the Year" by the Northern California Society of Professional Journalists. Prior to working at the Merc, he was a correspondent for the Wall Street Journal in Bonn, Germany from 1995 to 1998, and a writer for the Washington Post in 1994. Matt holds a PhD in Government and an MA in German and European Studies from Georgetown University. In addition to VentureBeat, Matt is also the Executive Producer of DEMO, the leading launchpad event for emerging technologies.
