75+ Startup Statistics & Trends Entrepreneurs Must Know [2024]

February 15, 2024 0 Comments

Looking to convert your idea into a billion-dollar startup?

And wondering about the secret sauce behind successful startups?

About 60% of startups begin at home. San Francisco is the highest-ranked city for startups across the world.

1 in 4 startups were not able to receive the funding they required and ended up with very limited growth. Friends and family have been the most popular financing method for startup costs in 2023. 

According to a Harvard Business Review, “entrepreneurial passion” and “shared vision” are required more than experience for a startup’s success.

Ready to delve deeper? Let’s uncover the latest startup statistics and trends.

Top Startup Statistics: Editor’s Pick

about 3.2 million statups are built every year in the US
  1. 25% of female-founded startups only have enough funding for 1 to 3 months. [12]
  2. The most valuable unicorn in the world is Bytedance, the social media startup behind TikTok with a value of $225 billion. [25]
  3. 49% of the world’s unicorns are based in the US. [25]
  4. 9 out of 10 startups fall apart. [14]
  5. 21% of startups face failure after a year. [14]
  6. Tech startups expended 2.3x more than non-tech startups during the pandemic. [26]
  7. The US is reported to be 4x more startup-friendly than the UK. [23]
  8. San Francisco is the highest-ranked city for startups across the world. [23]

General Startup Statistics

What do successful startups have in common?

It is surprising to note that 60% of startups begin at home. [19]

The global e-commerce unicorn market size is estimated to be $114 billion. [1] 

Startups in the finance and insurance sector have the biggest market valuation, accounting for $526 billion. [2]

Only 40% of startups are profitable. [11]

One-third of startups continue to lose money. [10]

About 3.2 million startups are built every year in the US. [9] 

One in five startups fail in the first year. [16]

JUUL Labs is the highest-funded US tech startup today. [16]

On average, it takes six months to hire someone for a startup. [12]

Usually, startup owners spend around 40% of their working hours on tasks that do not generate income such as hiring, HR tasks, and payroll. [13]

Startup Statistics Based On Demographics

An average startup founder is 42 years old. [18]

Did you think a boy in his 20s, a college dropout as a founder, well that’s a myth!

But a startup with a funding team aged 25 and younger has been recorded as the best performer. [19]

Startups with a female founder or co-founder perform 63% better for their venture investors. [19]

30% of female-founded startups only have enough funding for 4 to 6 months. [20]

25% of female-founded startups only have enough funding for 1 to 3 months. Only 8% have funds for more than 1 year. [20]

It has been reported that in 2022, male founders brought in $156,2 billion in venture capital and female founders brought in $28.1 billion in venture capital. [6]

Health, medicine, and wellness are the top business sectors for female-founded startups. [20]

Here is the list of industries with the percentage of female founders.

IndustryPercentage of female founders
Health14%
Medicine and Wellness14%
Finance9%
Retail and E-commerce8%
Food7%

Startups with black founders make up just 5% of Y Combinator-backed startups. [21]

Which Are the Best Startup Locations?

According to StartupBlink, the US is the highest-ranked country for startups. [23]

 The US, UK, Israel, Canada, and Sweden are the top five countries that provide a better startup ecosystem than the rest. [23]

top five countries by startup ecosystem score

The US is reported to be 4x more startup-friendly than the UK. [23]

San Francisco is the highest-ranked city for startups across the world. [23]

Here we have curated the list of top five cities with their startup rankings.

CityRank
San Francisco546.427
New York223.407
London127.426
Los Angeles116.943
Boston103.337

There are 9000 tech startups in New York City. Its startup ecosystem is worth $189 billion. [24]

Asian Smart City startups are expected to generate 45% of global revenue in the industry by 2025. [25]

Which university graduates are building startups?

  • Standford University has graduated most of the startup founders in the US. [22]
  • 465 graduates from Standford university are startup founders. [22]
  • MIT (367), Harvard (293), UC Berkeley(227), and Cornell(143) also gave founders who built successful startups. [22]

Startup Statistics Based On Industry

Which startup industry has been blooming recently?

Tech startups expended 2.3x more than non-tech startups during the pandemic. [26]

1.35 million startups are tech-related. [27]

31% of generative AI startups are for creating visual media. [28]

startup statistics by industry
  • 31.8% of all startups are in the data and software industry. [29]
  • Next in line is the health tech with 12.7% of startups in the industry. [29]
  • The transportation industry has the lowest number of startups, only 2.6%. [29]

Startup Cost Statistics

Looking forward to building your startup? A thorough look at the cost is the first must!

Equipment costs startups from about $10k to 125k depending on the type and team of startup. [7]

Salaries being the next important aspect for a startup’s survival, the average salary for self-employed individuals was $84,305 in 2022. [10]

Startups that include launching restaurants, medical offices, and manufacturing companies need more than $100k to get started. [5]

Startups that include accounting, online retail, construction, and landscaping can get started with a $5k startup cost. [5]

The cost of health insurance is also a big challenge to the survival of startups. [11]

Who do most people look up to for money?

Friends and family have been the most popular financing method for startup costs in 2023. [9]

Startup Funding And Investment Statistics

How do startups usually get funding?

According to SBA reports, business loans, credit cards, and lines of credit accounts makeup about three-fourths of financing for new firms. [5]

As per the NSBA survey, 1 in 4 startups were not able to receive the funding they required and ended up with very limited growth. [7]

31% of startup capital for employer firms is less than $10k. [2]

18% of startup capital for employer forms is more than $250k. [2]

It is reported that venture capital funding has reached a decade-high of  $200 billion in 2022. [3]

Individual venture capital firms receive more than 1000 proposals a year and are mostly interested in businesses that need an investment of at least $250k. [8]

It is interesting to note that 1 in 3 small businesses begin with less than $5k. [5]

Startup Success and Failure Statistics

Do you think building a startup is a cakewalk? Statistics state otherwise.

9 out of 10 startups fall apart. [14]

21% of startups face failure after a year. [14]

30% of startups shut down within the first two years. [14]

50% of startups shut down within five years. [14]

70% of startups dissolve within 10 years. [14]

Startup failures are common in companies with 11 to 50 employees. [14]

Quibi is the most expensive failed startup with $1.75 billion in funding. [4]

52% of UK entrepreneurs have fears of startup failure, while the percentage is 43% for the US. [17]

percentage of entrepreneurs that fear startup failure

Reasons Behind the Failure of Startups

Curious about what leads to a startup’s failure?

The lack of a product’s ability to reach the target audience and solve their real problems is the top reason for a startup’s failure. [14]

Nearly 50% of startups fail within a few years due to money issues. [17]

38% of startups run out of cash or fail to raise new capital and hence shut down. [4]

It has been recorded that 40% of startups are unable to become profitable.  And 30% of a higher chance of losing profit, while 30% lose money from the beginning.

23% of startups reported that team issues lead to failure. [13]

profitability of startups

The highest five-year survival rate for startups in mining is 51.3%. [16]

According to a Harvard Business Review, “entrepreneurial passion” and “shared vision” are required more than experience for a startup’s success. [15]

What Are Unicorn Startup Statistics?

only about 1% of startups evolve into a unicorn startup

When does a startup turn into a unicorn?

A private company valued over $ 1 billion is considered a unicorn startup. 

Only about 1% of startups evolve into a unicorn startup, like Uber, Airbnb, Slack, Stripe, and Docker. [4]

All the unicorns worldwide generate a total value of $4.3 trillion. [25]

The most valuable unicorn in the world is Bytedance, the social media startup behind TikTok with a value of $225 billion. [25]

49% of the world’s unicorns are based in the US. [25]

Out of 1361 unicorns, 666 are based in the US, while 316 are based in China and 68 are in India. [25]

Russia, Saudi Arabia, and Venezuela are the highest GDP nations with no unicorns yet. [25]

20% of US-based unicorns are Saas companies. [25] 

The fintech industry has the highest number (171) of global unicorns. [25]

FAQs 

Why do startups fail?

The lack of a product’s ability to reach the target audience and solve their real problems is the top reason for a startup’s failure. Nearly 50% of startups fail within a few years due to money issues.

38% of startups run out of cash or fail to raise new capital and hence shut down. 23% of startups reported that team issues lead to failure.

What are ‘Decacorns’?

Decacorns are private companies with a known valuation of at least $10 billion. There are only 53 Decacorn startups in the world today.

What percentage of startups survive after 5 years?

Around 50% of startups make it through the first five years.

How many startups are created every year?

About 3.2 million startups are built every year.

Which country has the highest number of startups?

The US has the highest number of startups worldwide. The US is reported to be 4x more startup-friendly than the UK. San Francisco is the highest-ranked city for startups across the world.

The Final Thoughts 

Startups have seen growth in the last decade. Covid gave a significant boost to tech-related startups as 1.35 million startups now are tech-related. 

There are about 1,215 billion dollar unicorn startups across the world today. 21% of startups face failure after a year. While only 40% of startups are profitable, one-third of startups continue to lose money. 

The US is home to the highest number of startups, it has 4x more startups than the second-highest startups originating nation the UK. While there are only 1% of unicorn startups at present, the number is projected to increase significantly soon.

Sources

  1. Demand Sage. E-commerce unicorn market size
  2. Federal Reserve. Small Business Credit Survey
  3. KPMG. NVCA venture monitor
  4. CBInsights. The venture capital Funnel
  5. Small Business Trends. One-third of Small Businesses Start with Less Than $5,000
  6. PitchBook. US VC female founders dashboard
  7. Fundera. Small business staistics
  8. Money Crashers. How to get money to start a business
  9. Chamber of Commerce. Most popular startup funding report
  10. Zippia. Self-employment careers
  11. NSBA. Year-end economic report
  12. Forbes. What makes a great startup team
  13. Entrepreneur. Is it time to outsource HRs
  14. Failory. Startup failure rate
  15. Harvard Business Review. What makes a successful startup team
  16. US Census Bureau. Founding teams and startup performance
  17. GEM. Global Opportunity Report
  18. HBR. The average age of successful founders
  19. First round. Startup Statistics
  20. 500 Startups. Female founder survey
  21. Y Combinator. The YC startup directory
  22. Crunchbase. Where funded founders went to school
  23. StartupBlink. Global ranking of startup ecosystems
  24. TechNYC. Tech snapshot nyc
  25. Hurun. Global Unicorn Index
  26. Startup Genome. The State of the Global Startup Economy
  27. Netshop. How Many Tech Startups Are Created Each Year?
  28. CB insights. Generative AI landscape
  29. Cruchbase. 31.8% of all startups