Why do they keep investing?
newscatcher
2022-06-21 13:30
Why do they keep investing?
In 2015, the Israeli tech ecosystem was rocked by a reprt on the high failure rate among Israeli startups. The study by IVC claimed that only 4% of startups have succeeded overall and that of the current crop of active companies, only 2.5% could be considered successful based on revenues of $100 million or 100-plus employees. This rose to 6% if the criteria included a valuation of $50 million or more or companies that were sustained by sales and did not need to raise capital anymore.Even with the birth of so many unicorns in the last two years, critics have pointed out that these only represent around 1% of the total number of startups while most companies have made little or no contribution to investors' returns.

https://www.calcalistech.com/ctechnews/article/sk6cc1195

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