Do VCs Abandon Startups?

For years, people I have known in the VC business, as well as entrepreneurs who have been funded by VCs, have discussed the 7-2-1 rule. For every 10 investments a VC fund makes: 7 will fail - "dogs" 2 will hang around, perhaps returning the initial investment - "zombies" 1 will be a great success - "superstar" This formula is why VCs are willing to take such risks; they expect many companies in their portfolio to fail.