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Why So Many Startups Never Reach Their Second Funding Round

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This story appears in the December 2013 issue of Entrepreneur. Subscribe »

The "valley of death." I hear this term used a lot in startup circles, representing the gap between a great idea and the task of turning it into a business. From a financial standpoint, it points to the moment when the feel-good times funded by an initial seed investment come to an abrupt end after a search for formal venture capital fails.

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