[briandear]

Same thing happens to tech startups. Same thing happens to local restaurants. In fact, the restaurant failure rate is much higher than most other businesses. Restaurants go bust all the time, losing money for investors (generally smaller time investors) and employees lose jobs. It’s called life. Success is never guaranteed. Is it better for someone to have had a job for a year and lost it than that job never having been created in the first place? Businesses are formed and fail all the time. In fact, that failure process is vital: it ensures capital is being allocated towards its most efficient use. Companies not being allowed to fail is what creates stagnation as available capital is consumed by inefficient enterprises rather than being redeployed to better opportunities. It’s the very essence of a market economy.