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Customer Quote by Mahendra Ramsinghani

“Each year about 600,000 start-ups are launched. Less than 0.5 percent attract VC. Of Inc. magazine's annual list of the 500 fastest growing companies in the United States assessed over a decade (1997–2007), less than 20 percent of companies were venture backed” - “62.4 percent of VC investments…” quote by Mahendra Ramsinghani
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““Each year about 600,000 start-ups are launched. Less than 0.5 percent attract VC. Of Inc. magazine's annual list of the 500 fastest growing companies in the United States assessed over a decade (1997–2007), less than 20 percent of companies were venture backed” - “62.4 percent of VC investments were completely lost while 3.1 percent of the investments accounted for 53 percent of the profits for roughly 600 investments””

Mahendra Ramsinghani

About This Quote

Source Book: Venture Capital Insights, 2019

Only a tiny fraction of startups secure VC; most success comes from non‑VC growth, highlighting risk and concentration.

In simple terms: VC backing is rare and uneven.

Key Takeaway

Explore alternative funding routes.

Themes

entrepreneurship finance risk

Mood

analytical pragmatic

Type

advice informative

When to use this quote

  • bootstrapping
  • angel investing
  • crowdfunding
  • strategic partnerships

Key Concepts

venture capital dynamics startup ecosystems

Questions to Reflect On

  • What non‑VC resources can you tap?
  • How do you mitigate funding risk?
A Different Perspective

VC focus can overlook promising ventures.

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