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You don't have to spend much time in this industry to recognize that high-tech companies fail fairly often. New technologies, new markets, new partners, new channels of distribution, new management teams -- and now, with the Internet, a whole rash of new business models -- are all conspiring against any consistent success. It's a simple matter of odds. Because we already recognize that high-tech companies frequently fail, it's useful to study and understand how and why they fail. When we engage in high-risk enterprises individually, we take our fate into our own hands. But when we do so collectively -- as the high-tech sector often does -- learning from the failures that surround us becomes the critical evolutionary behavior. This article is about some of the known ways in which high-tech startups fail. Over time, I hope to add to the list of recognized failure modes. The more of these modes we can avoid, the greater the chance we have of finding success. In sharing this information, I ask the question that any consultant or venture investor would ask: could we please not fail in exactly these same ways again? In other words, if you're going to fail in the future, please have the courtesy to do so in some new and interesting way. Source: Red herring, April 10, 2000 |
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