A Leg Up
Resource-Strapped Startups Lack Project Management Chops, So Business Incubators Are Lending A Hand
Startup success stories are legendary. Visions of Amazon founder Jeff Bezos selling books out of his garage, or Jack Ma scraping together money to launch Alibaba, inspire budding entrepreneurs around the world. They also attract venture capitalists (VCs): In 2017, funding to VC-backed companies grew 50 percent over 2016, reaching US$164.4 billion. But despite all the fabled success stories and seed money, startups are a risky bet. More than 50 percent of all U.S. startups fail within five years, according to 2017 data from Statistic Brain Research Institute. The high rate of failure, even among companies with strong backing by savvy investors who vetted the idea and team, suggests some entrepreneurs are missing vital tools to help them transition from big idea to thriving business.