Venture capitalists tend to be more responsive than other sources of financing to changes in a start-up company's financial needs.

The strategic planning of a start-up company is a less important factor in the long-term success of the company than are the personal characteristics of the entrepreneur.

More than half of all new companies fail within five years.

The management structures of start-up companies are generally less formal than the management structures of ongoing businesses.

Venture capitalists base their decisions to fund start-up companies on such factors as the characteristics of the entrepreneur and quality of strategic planning of the company.