It's easy to look in retrospect at many of the investment decisions made and companies started in the past few years and conclude that they never had a chance. From another perspective, venture capital financing must move quickly to keep apace with the country's entrepreneurial energy. Some efforts are bound to fail, but many succeed. The success of our economic system is generated by the innovation it drives and the learning that results from that innovation. Measured by the rate of innovation, the system works extraordinarily well.
Some companies fall by the wayside as progress is made.
But the result is innovation and growth on a scale that can't be touched by any other economy on the planet. Markets Unfortunately, the rate at which innovation is taking place doesn't allow time for VCs to pause and calmly figure out how markets are likely to develop. If the entire community stepped back and tried to analyze everything to the nth degree, innovation would slow down dramatically. One of the great strengths of our entrepreneurial culture is a bias toward action. Entrepreneurs and VCs alike learn from failures.