At this stage, the risk of losing the investment is tremendously high, because there are so many uncertain factors. The market research may reveal that there is no demand for the product or service, or it may reveal that there are already established companies serving this demand. Research by J.C. Ruhnka and J.E. Young shows that the risk of the venture capital firm losing its investment is around 66.2% and the causation of major risk by stage of development is 72% . The Harvard report by William R. Kerr, Josh Lerner, and Antoinette Schoar, however, shows evidence that angel-funded startup companies are less likely to fail than companies that rely on other forms of initial financing.