Question

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

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.