"Starting a business doesn't always go so smoothly. More than 20 percent of businesses fail in their first year, with nearly 50 percent closing their doors in the first five years, according to the U.S. Bureau of Labor Statistics. And while those numbers aren't as bad as the oft-cited myth that half of all startups close their doors in the first year, there's still a significant chance of failure."
"For some founders, the failure of a startup is a one-and-done thing. The thought of taking that sort of risk again, both financially and emotionally, is too daunting. Failure doesn't make you persona non grata in the funding world, though. In some cases, it can be considered a good thing to venture capitalists. In fact, some of the most successful entrepreneurs in history have stumbled or flopped before, they went on to launch businesses that had a much greater degree of success."
More than 20 percent of businesses fail in their first year and nearly 50 percent close within five years, creating a significant risk for new founders. Many entrepreneurs find the prospect of retrying financially and emotionally daunting, yet failure does not permanently bar access to funding and can sometimes be viewed positively by venture capitalists. Several highly successful founders experienced early setbacks before later achieving major success. Examples include Reid Hoffman, whose SocialNet shut down and whose refunded investor capital preceded his later creation of LinkedIn, and Steve Jobs, who was forced out of Apple in 1985 after a power struggle.
Read at Inc
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