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.