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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. The angel then introduces the entrepreneur to his or her wealthy friends and business connections who, based on the good reputation of the referring angel, also invest.

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Think Your Start-up Is Venture Worthy? Think Again.

techcrunch.com

Researchers divided the portfolio companies into six stages and startups are still operating a loss in each of the first four. That means the vast majority of privately held companies are still very dependent on venture money to stay in business. Especially since even Youtube is still struggling to try find a viable business model.