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Scaling is Hard, Case Study: Akamai

Seeing Both Sides

The Lean Start-Up movement, as exemplified in Eric Ries' book The Lean Start-Up, has appropriately focused a great deal of attention on the hard decisions and techniques required to create a company from nothing. But the second year (2000) was simply astounding: nearly $90 million! How did Akamai do it? . . Founding Akamai.

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The Venture Capital Secret: 3 Out of 4 Start-Ups Fail

online.wsj.com

The results were similar when he examined data for companies funded from 2000 to 2010, he says. Overall, nonventure-backed companies fail more often than venture-backed companies in the first four years of existence, typically because they dont have the capital to keep going if the business model doesnt work, Harvards Mr. Ghosh says.