I would assume this headline is "of all companies for which founding papers are filed in America". That seems a poor statistic to use when 65% of Americans try to start a business at some point.
A more meaningful number might be % chance among companies who received venture funding. A funding event represents a concrete shift in probability of success.
Does anyone commenting here know the probability of, say, a $10M, $100M, and $1B exit after a Silicon Valley funding event (funding from recognized VC)?
13% of VC-backed startups exit for over $10M, 5% exit for over $50M, and 2% exit for over $100M, although there are many different studies with slightly different numbers:
They probably look less high if you compare them with the percentage of VC-backed companies valued at $10M, $50M and $100M in their last round of funding...
Couldn't agree more. Another factor that popped into my head: how many people start businesses with billion dollar aspirations? If you open a bike store, restaurant or mom-and0pop shop, chances are you aren't even trying to turn them into billion dollar companies.
A more meaningful number might be % chance among companies who received venture funding. A funding event represents a concrete shift in probability of success.
Does anyone commenting here know the probability of, say, a $10M, $100M, and $1B exit after a Silicon Valley funding event (funding from recognized VC)?