VC funded startups are rare and unproductive for the economy.

Only 0.05% of startups get VC funding (CB Insights) Venture capital is defined as a temporary equity investment in young, innovative, non-listed companies, aka startups. Many promising startups seek venture capital as a way to secure investment, but it’s extremely competitive and rare. A mere 0.05% of startups get VC funding. 25. 75% of venture-backed companies never return cash to investors (Failory) Startups certainly use the capital they raise, but often don’t return it. Research shows that three in four startups backed by VC never end up returning their cash to investors. Meanwhile, as many as 30-40% of investors never get back their entire initial investment from a startup. VC startup failure 26. Less than 5% of startups break even on cash flow (The Wall Street Journal) Less than 5% of startups succeed enough to meet a specific revenue growth rate—or even break even on cash flow. An estimated 30-40% of high-potential startups fail as far as needing to liquidate all assets, as well as investors losing all of their original invested money. 27. 25-30% of VC-backed startups still fail (The Wall Street Journal) Experts from The National Venture Capital Association estimate that 25% to 30% of startups backed by VC funding go on to fail. As a general rule of thumb for startups, out of every 10, about three or four fail completely. The other three or four return their original VC investments, and only one or two will produce substantial returns. 28. The average investment check from a VC firm is $2.6 million for seed stage companies (Fundable) Statistics show there are around 462 active venture capital firms that invest in around 3,700 deals per year. Although a tiny percentage of companies are ever funded by a VC, the average investment size is noteabout at around $2.6 million to seed stage startups.