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There have been many successful e-businesses as well as many failed e-businesses. The methods and practices that were evident in the development of both surviving e-businesses and failed ones have much to teach us. Why did some e-businesses fail while others survived? At present few guidelines exist to assist e-business owners and managers wanting to succeed in their Internet-based ventures. This study empirically investigated factors that may lead to e-business success or failure; these were categorized as management, market, and financial factors. The results of a survey were combined with one-on-one interviews of venture capitalists who funded successful and failed e-businesses. The results indicate that certain factors deemed applicable to an e-business may have contributed to the firm’s eventual success or failure.