It’s really freakin’ hard to build a company. In fact, there’s no rational reason to do so.

According to private equity research company CB Insights, 42% of the time your startup will fail due to lack of a market need for the product, about a third of the time you’ll run out of cash, and about 20% of the time you’ll have either not assembled the right team, not stood up to competition, set an unsustainable pricing model, or simply built a user un-friendly product.

And yet, according to the PACT’s 2019 Philadelphia Venture Report, there were 225 venture capital deals to Philadelphia metro area startups in 2019 and $2.5 billion in venture capital dollars invested into our region. I actually worked at one of these venture capital funds backing local startups, and we invested in some 28 companies in the Greater Philadelphia region in 2019.

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