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How hard is it to get angel investment or venture capital?

Akin to venture capital, angel investment although more prevalent is not a given for entrepreneurs and business owners. In general, the odds for most entrepreneurs to obtain outside funding are slim to none. While there are no statistical data points to suggest how many entrepreneurs are successful in acquiring angel investment, prolific angel investor and chairman of the NY Angels, David Rose, has offered some sobering statistics.

At the April 2010 Entrepreneur Week in NY, Rose stated:

“The majority of all startup businesses fail within two to four years. Angels and VCs look at hundreds of companies and only one in 10 return. We try to pick the best. Under 1,000 companies get venture capital each year. The odds to get money are 40:1 from angels and 400:1 from venture capitalists.”

Rose’s venture capital statistics are quite a bit off from the annual venture numbers but you get the idea. It’s hard to raise money from both venture capitalists or angel investors.