In the world of startups, $1 billion Instagram exits are the exception, not the rule. Failure is a fact every experienced startup founder is intimately familiar with. For all the glittering Groupons and Facebooks of the world, there are thousands of festering remains of once promising startups languishing in the deadpool.
The failure rate is so high that Harvard Business School estimates 95 percent of new businesses fail if failure is defined as failure to meet a set projection. This rate falls down to 70-80 percent if failure is defined as inability to get adequate return on investment. The rate goes down further to 40 percent if we define failure as investors losing all or most money put into the company.