Emergic: Rajesh Jain's Blog

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Experimentation and Failure

March 16th, 2007 · No Comments

Josh Kopelman writes:

The truth is that early stage ventures are all about experimentation and iteration. As soon as it’s written, every business plan is wrong. Good entrepreneurs recognize this, and tend to build agile teams that can quickly respond to early market information in order to identify a real business model and minimize risk.

A necessary side effect of all this experimentation is that most startups will ultimately fail. While the mythical “90% failure rate” has been disproven, I would venture to guess that for technology based startups the failure rate is still extremely high. That’s just the nature of the early stage venture world, and ideally it allows the entrepreneurs involved to apply their hard-earned lessons towards more productive ventures. Or, as Jeremy Liew aptly put it: “Companies die, founders and employees learn from the experience and move on, and hopefully start more companies. I for one would love to see the second acts from the teams that are newly freed up.”

Tags: Entrepreneurship