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Seed and startup stage companies have never been a favorite of investors for one obvious reason: They're risky. While the failure rate is nowhere near the mythical "9 out of 10 don't last a year" - it's closer to 6 out of 10 - the fact is that companies that have been around a while are more likely to produce a return on the investor's dollar. Another reason investment in startups is down is because investors may have to put more money into companies they've already added to their portfolio.
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