That 90% of Silicon Valley start-ups fail is often mentioned in these columns, and it's in many ways the theme of my upcoming book, They're Both Wrong. Investor and writer Andy Kessler alerted me to the number, and it's one that anyone aiming to understand economics should internalize.
The 90% number is a reminder that bad ideas in Silicon Valley quickly fail. The Valley's immense wealth isn't an effect of constant success; rather it's a certain consequence of persistent failure that forces constant improvement. What makes no sense dies with great rapidity in northern California, so that good ideas can be born.
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