About 90% of technology and media companies fail within the first three years of business how does this tendency affect the loans granted to new technology and media companies

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Social Studies

Wyatt Sutton

13 December, 08:55

About 90% of technology and media companies fail within the first three years of business how does this tendency affect the loans granted to new technology and media companies

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Marisol · Answer 1

Investors / loan companies are not as likely to provide the funding for new technology companies because they know the rate of failure (at 90%) makes it a poor investment, with the unlikely outcome of anything beneficial. With companies such as Apple and Microsoft that have a complete monopoly on the technology market, loans are not as likely to be granted.