--- title: "Meaning & Key Takeaway of: Each year about 600,000 start-ups are…" description: "\"“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 ..." image: "https://sms4smile.com/quotes/i/c11/mahendra-ramsinghani-68806_customer_each-year-about-600-000-start-ups-are-la_2268317.jpg" --- # Each year about 600,000 start-ups are launched. Less than… ![“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](https://sms4smile.com/quotes/i/c11/mahendra-ramsinghani-68806_customer_each-year-about-600-000-start-ups-are-la_2268317.jpg) [Download](https://sms4smile.com/quotes/i/c11/mahendra-ramsinghani-68806_customer_each-year-about-600-000-start-ups-are-la_2268317.jpg) [Open image](https://sms4smile.com/quotes/i/c11/mahendra-ramsinghani-68806_customer_each-year-about-600-000-start-ups-are-la_2268317.jpg) > ““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](https://sms4smile.com/quotes/author/mahendra-ramsinghani/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. 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. ★ ★ ★ ★ ★ No ratings yet [Customer](https://sms4smile.com/quotes/about/customer/) [Entrepreneurship](https://sms4smile.com/quotes/about/entrepreneurship/) [Investing](https://sms4smile.com/quotes/about/investing/) [Launched Percent](https://sms4smile.com/quotes/about/launched-percent-5247022/) [Percent Companies](https://sms4smile.com/quotes/about/percent-companies-1708564/) [Percent Vc](https://sms4smile.com/quotes/about/percent-vc-5247019/) [Startups](https://sms4smile.com/quotes/about/startups/) [Vc Investments](https://sms4smile.com/quotes/about/vc-investments-5247021/) [Venture Backed](https://sms4smile.com/quotes/about/venture-backed-5247020/) [Venture capital](https://sms4smile.com/quotes/about/venture-capital/) ## Related quotes > ['Shark Tank' has been a sincere joy. 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What that says is that companies that…](https://sms4smile.com/quotes/john-t-chambers/since-i-became-ceo-87-percent-of-the-companies-in-the-fortune-500-are/) [John T. Chambers](https://sms4smile.com/quotes/author/john-t-chambers/) > [“First-time fund is acceptable, but not a first-time investor.”](https://sms4smile.com/quotes/mahendra-ramsinghani/first-time-fund-is-acceptable-but-not-a-first-time-investor/) [Mahendra Ramsinghani](https://sms4smile.com/quotes/author/mahendra-ramsinghani/) > [“Amidst all the hype and hoopla around this business, I wanted to emphasize the challenge—it is seductive but the failure rate is very high.…](https://sms4smile.com/quotes/mahendra-ramsinghani/amidst-all-the-hype-and-hoopla-around-this-business-i-wanted-to/) [Mahendra Ramsinghani](https://sms4smile.com/quotes/author/mahendra-ramsinghani/) > [“A good portfolio manager knows which companies to keep and which ones to let go. Many a GP has struggled with portfolio companies that…](https://sms4smile.com/quotes/mahendra-ramsinghani/a-good-portfolio-manager-knows-which-companies-to-keep-and-which-ones/) [Mahendra Ramsinghani](https://sms4smile.com/quotes/author/mahendra-ramsinghani/) > [Venture capital is a dynamic and people-driven business.](https://sms4smile.com/quotes/steve-jurvetson/venture-capital-is-a-dynamic-and-people-driven-business/) [Steve Jurvetson](https://sms4smile.com/quotes/author/steve-jurvetson/) > [There's nothing wrong with raising venture capital. Many lean startups are ambitious and are able to deploy large amounts of capital. 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Very few firms made most of the money, and they…](https://sms4smile.com/quotes/charlie-munger/harvard-and-yale-concentrated-with-venture-capitalists-that-got-the/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) > [I delivered lectures, and I was also a consultant for international companies in finance, both private equity and big venture capital funds.](https://sms4smile.com/quotes/ehud-barak/i-delivered-lectures-and-i-was-also-a-consultant-for-international/) [Ehud Barak](https://sms4smile.com/quotes/author/ehud-barak/) > [All markets have boom and bust cycles, and I think venture capital market has even more exaggerated boom and bust cycles.](https://sms4smile.com/quotes/fred-wilson/all-markets-have-boom-and-bust-cycles-and-i-think-venture-capital/) [Fred Wilson](https://sms4smile.com/quotes/author/fred-wilson/) > [Unfortunately, 'climate' has become a dirty word - obviously in politics, but even to some degree in my world, in venture capital. People hesitate…](https://sms4smile.com/quotes/evan-williams/unfortunately-climate-has-become-a-dirty-word-obviously-in-politics/) [Evan Williams](https://sms4smile.com/quotes/author/evan-williams/) ## More by Mahendra Ramsinghani > [“Amidst all the hype and hoopla around this business, I wanted to emphasize the challenge—it is seductive but the failure rate is very high.…](https://sms4smile.com/quotes/mahendra-ramsinghani/amidst-all-the-hype-and-hoopla-around-this-business-i-wanted-to/) [Mahendra Ramsinghani](https://sms4smile.com/quotes/author/mahendra-ramsinghani/) > [“A good portfolio manager knows which companies to keep and which ones to let go. Many a GP has struggled with portfolio companies that…](https://sms4smile.com/quotes/mahendra-ramsinghani/a-good-portfolio-manager-knows-which-companies-to-keep-and-which-ones/) [Mahendra Ramsinghani](https://sms4smile.com/quotes/author/mahendra-ramsinghani/) > [“First-time fund is acceptable, but not a first-time investor.”](https://sms4smile.com/quotes/mahendra-ramsinghani/first-time-fund-is-acceptable-but-not-a-first-time-investor/) [Mahendra Ramsinghani](https://sms4smile.com/quotes/author/mahendra-ramsinghani/) [Explore all 4 Mahendra Ramsinghani quotes ](https://sms4smile.com/quotes/author/mahendra-ramsinghani/) ## More Customer quotes > [“Start a business, not a startup”](https://sms4smile.com/quotes/anonymous/start-a-business-not-a-startup/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [Amongst the financial Twitterati, the term 'muppets' has come to describe any client used and abused by some financial predator. 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