Six Interesting Stats About Startup Success

1.  Failure Increases Chances Of Success:  Entrepreneurs who succeeded in a prior venture have a 30% chance of succeeding in their next venture.  First-time entrepreneurs only have an 18% chance of succeeding.  Interestingly, those have previously failed have a 20% chance of succeeding. 

2.  VCs Really Do Invest In The People:  Failed serial entrepreneurs are more likely than successful serial entrepreneurs to get funding from the same venture capital firm that financed their first ventures.

3.  Serial Entrepreneurs More Likely To Raise Funding:  Entrepreneurs are much more likely to receive first-round funding at an early stage (60% of the time) if this is their second or subsequent venture than first time entrepreneurs (which receive such funding 45% of the time).

4.  First-Timers and Non-Successes Benefit More From VC Expertise:  First-time entrepreneurs have a 17.6% chance of succeeding when funded by more experienced VC firms and an 11.7% chance of succeeding when funded by less experience VC firms.   Failed entrepreneurs who are funded by experienced VC firms have a 22.1% chance of succeeding compared to a 14.7% chance of succeeding when they are funded by less experienced VC firms.  So, first time entrepreneurs and failed entrepreneurs are more likely to benefit from VC firm expertise.. 

5.  Better VCs Provide Better Deals:  Venture capital firm experience is positively related to pre-money valuation.  More experienced firms pay more for new ventures -- likely because they have higher success rates.

6.  Serial Entrepreneurs Get Better Terms:  Repeat entrepreneurs receive more favorable terms for vesting, board structure and liquidation rights, but do not receive greater equity ownership percentages.  So, though serial entrepreneurs may extract greater value from VCs, this value is in the non-price terms of the investment.

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http://onstartups.com/tabid/3339/bid/79/Six-Interesting-Stats-About-Startup-Success.aspx