Bet on skill and experience

This year’s MIT $100K Business Plan Contest semi-finalists was named in March. This list is interesting among other reasons because a large component of success in entrepreneurship and venture capital can be attributed to skill, thus increasing the rate of success above the 18-30% average hit rate. Chance of success may be enhanced even further by choosing experienced venture capital firms (but only for entrepreneurs without a successful track record and by working in the ‘right’ industry

Actually, failure increases chances of success; VCs really do invest in the people; serial entrepreneurs are more likely to raise funding; first-timers and non-successes benefit more from VC expertise; better VCs provide better deals; and serial entrepreneurs get better terms.