Before we get into these startup statistics, we will define startups and discuss a few things about them.
Within the facts, stats, and data in this article, you may find out what it takes to become a startup founder.
What’s a startup? The concept behind the term “startup” pertains to any company that’s in its initial phase of operations.
Startups are often founded by at least one, but usually more than one entrepreneur who wants to develop an in-demand service or product.
The biggest thing about startups is the overhead and initial funding and capital required to get started.
Many people don’t have access to these funds, so they seek investors or venture capitalists to help. They may also look to family, friends, business loans, or crowdfunding.
According to statistics and research, startups sometimes come with a high-risk of failure.
However, some startups are unique and interesting places to work where you can also get some amazing opportunities to learn and grow with the company.
There are many things you need to know and do before founding a startup, but once you read the following startup statistics, you should learn enough to know if you want to give it a spin.
Key Startup Statistics 2022
- The United States dominates the market share with 71,153 Startups (Unicorns).
- In 2020, 61% of global Super Startups provided B2B solutions.
- ByteDance is the world’s most valuable Startup.
- Ecommerce, Fintech, and Artificial Intelligence are rapidly growing areas in Startups.
- Almost 90% of all startups fail, with 10% failing within the first year.
- In the United States, 15.4% of the total population is involved in startups.
- On average, it takes 2 to 3 years for a startup to make a profit.
- Most entrepreneurs, 95% of them, including those with startups, have a bachelor’s degree or higher.
- Nearly 60% of small businesses get started with under $25,000.
- Over half of small businesses have a chief financial officer (CFO).
Detailed Startup Statistics 2022
This section will walk you through some general startup statistics to get use started. Some of these facts and stats may be familiar to you, but some may be new to you.
The United States is at the top of the list in global Startups and has been since 2020. This country has dominated the Startups market share for three years in a row.
The percentage of global Startups in the US accounts for 64.7%.
Second to the United States is India. India is ranked in second place for its number of startups with 11,162.
However, India is ranked 5th place in terms of the most startup friendly culture, and accounts for 4.1% of all Unicorns on the globe.
(CEO World, USC Marshall School of Business, Ranking Royals)
2. In 2020, 61% of Global Super Startups Provided B2B Solutions.
In contrast, startup statistics show that the other 39% provided B2C solutions. Either way, both are commercial types of transactions. The difference is the audience to which they cater.
B2B is short for business-to-business, and B2C is business-to-consumer. Both are processes for selling products and services. One is for selling to businesses and the other to consumers.
3. ByteDance Is the World’s Most Valuable Startup.
Unicorn companies are Startups that have a market value of at least $1 billion. Bytedance happens to be the highest valued Unicorn company in the world.
Its value is more than $350 billion.
The technology company, ByteDance owns TikTok, the trendy social media app used by the world’s younger crowd.
It is one of over 600 Unicorn companies across the globe. The Unicorn market share is most dominated in the United States and China.
4. Ecommerce, Fintech, and Artificial Intelligence Are Rapidly Growing Areas in Startups.
Ecommerce has been rapidly growing over the past several years with a substantial uptake in the last six years. This arena has shown huge growth in the Startups market.
Second to that, is Fintech, which enjoys growth in cybersecurity, artificial intelligence (AI), and EdTech.
Ecommerce is a 3.53 trillion industry as of 2019 to 2022. Likewise, Fintech has managed to grab its share of the Startups market with a market value of over 232.7 billion in 2021.
Also, EdTech’s market value accounted for 88.82 billion in 2021. All of these industries are expected to keep growing.
(ESEI Business School)
5. Startup Statistics Reveal that Almost 90% of All Startups Fail, with 10% Failing Within the First Year.
That means that only 10% of startups succeed. However, there are several reasons that this large percentage of failure occurs.
About 38% are unable to raise new capital, or run out of cash. Another 35% simply don’t have a market need.
Also, 20% fail to rise to the competition, and 19% have a poor business model.
Here are a few more examples of why startups fail.
- 18% due to legal or regulatory issues
- 15% because of costs and pricing
- 14% don’t have the right team
- 10% have poor timing
- 8% have a poor product
- 7% lack harmony among the investors or team
- 6% Pivot gone awry
- 5% lack passion or get burned out
This is why only 10% succeed.
6. In the United States, 15.4% of The Total Population Is Involved in Startups.
Since 15.4% of the US population is involved with startups, it’s important for them to succeed. Most, if not all, strive to achieve Unicorn status, a worth of over $1 billion.
Startups are wildly competitive and erratic, so it’s a challenge to attract good talent.
Most small startups only have a competitive compensation solution to offer over the starting pay of larger companies.
(Statista 2, People Keep)
7 . On Average, It Takes 2 to 3 Years for A Startup to Make a Profit.
If you’re considering getting in on the Startup trend, it’s wise to do your homework for your niche.
You need to know what it will cost to stay afloat for at least 2 to 3 years, including any kind of crisis or contingency.
If you look at the reasons that startups fail, you will see that some failures come from poor planning and creating a poor business model.
These are areas of starting a business that require your dedication and attention.
8. Startup Statistics Show that 95% of Entrepreneurs Have a Bachelor’s Degree or Higher.
You’ve heard the success stories of people like Mark Zuckerberg, Steve Jobs, and Bill Gates.
They were all college dropouts who started their own startups to become billionaires.
However, that’s not how it always works.
In fact, 95% of all entrepreneurs have at least a bachelor’s degree, if not a master’s, or PhD.
So, while you may not need a college degree to start a business, considering that 90% of Startups fail, you should probably rethink dropping out.
9. Nearly 60% of Small Businesses Get Started with Under $25,000.
The precise percentage of small businesses that started with less than $25,000 is 58%. One-third of small businesses launch with less than $5,000.
Rarely is that enough to start a successful business, though in some cases, it happens.
The costs of starting a new business involve more than just money. Sometimes, $5,000 to $25,000 can be enough to get you started.
However, in instances where the entrepreneur is launching a restaurant, medical office, or a manufacturing company, it will take much more. Most entrepreneurs say that it took $100,000 to start their businesses.
10. Over Half of Small Businesses Have a Chief Financial officer (CFO).
Out of 895 businesses that were surveyed, over 50% said they have a CFO or a team member who manages the company’s finances. This data comes from The Wall Street Journal.
What does the CFO do? The CFO holds the top position in the financial department of a business.
They use operational and financial reports and data from the accounting and finance teams and the CEO to forecast the financial status of the business.
(The Wall Street Journal)
Financial and Investor Startup Statistics 2022
In this section of the article, we will cover startup statistics that fall under the financial and investor categories. A startup must gain interest from investors to get funding.
They must also keep investors and attract more by proving their worth. Let’s see what the data reveals.
11. Data Shows that Only 0.5% of Entrepreneurs Use Venture Capital.
We hear and read so much about “angel investors” and “venture capital”, that it seems like a very popular option for startups.
However, only a tiny percentage, 0.05% of startups obtain or use venture capital.
Sadly, venture capitalists don’t have much interest in startups, which is why they rarely invest in them.
On the other hand, when they do, it’s because the startup was worth it.
12. Most Startups (Small Businesses) only Have $10,000 at Most While in Startup Mode.
According to a 2009 Ewing-Marion Kauffman Foundation survey, the average cost to start a new small business came to $31,150.
Consequently, Intuit Quickbooks says that most small businesses have $10,000 or less at their disposal to get started.
Naturally, the amount you need to get started in a new business varies depending on the type of business and other factors.
You can’t start some businesses and keep them going with only $10,000.
However, you may not need $31,150 to start a business. Therefore, the averages don’t apply to all startups, according to startup statistics.
13. Startup Statistics Reveal that Venture Capital Firms (VC) Get Over 1,000 Business Proposals Annually.
Since VC firms are more discerning about where they make their investments, they are primarily interested in startups that require investments of $250,000 and over.
Venture capital firms are prone to doing their homework before considering investing in small businesses. They are seeking startups that can show potential for rapid growth.
14. 2018 Statistics Showed that Female Startup Founders Attracted $2.86 Billion in Venture Capital, While Male Startup Founders Attracted $109.36 Billion in Venture Capital.
This is a huge contrast in VC funding between genders.
Even though VC for female startup founders had a big year in 2021 with $20 billion in funding, that is still a far cry compared to male funded startups.
Forbes says that the 2018 figures represent a male-to-female entrepreneur ratio of 10/7.
While that doesn’t seem like a large gap, in terms of VC funding, it’s a massive gap.
15. Only Around 1% of Startups Reach Unicorn Status.
Not every startup is going to become Airbnb, Uber, Docker, Stripe, Slack, or another billion-dollar and over company.
It’s well-known that a vast majority of startups fail, which is a large contrast to those that reach unicorn status.
16. 2019 Startup Statistics Revealed that 52% of Businesses Anticipated Their Next Round of Business Funding to Come from VC.
In 2019, 52% of businesses anticipated that their next round of funding would be from venture capital firms.
Another 17% expected to get individual, angel, or micro-VC funding for their next round.
Additionally, 8% anticipated that they would receive private equity funding; 7% believed they would get corporate investors, and 6% expected to experience organic growth.
(Silicon Valley Bank)
17. 2019 Startup Statistics Showed that Half (50%) of Business Leaders Cite Acquisitions as A Realistic Goal.
In 2018, this figure was 57%. Most startups in the United States say that the most realistic goal they have is to achieve acquisition. This is also the most cited path to a startup’s exit.
Next, businesses are looking for IPOs, at 18% (2018 and 2019). Of those who plan to stay private, there were 16% in 2018 and 17% in 2019.
The biggest majority said they “don’t know”, at 15% in 2019, which is up from 9% in 2018.
(Silicon Valley Bank)
18. One-Third of Startups Small Business Startups Get Started with Under $5,000.
Statistics from a Kabbage survey in 2019 showed that a third of small businesses started with under $5,000.
The survey included 600 successful small business owners. However, the lack of funds didn’t stop these thriving business owners.
From this same survey sample, 58% said they got started with under $25,000.
Understandably, 65% of respondents said they weren’t sure they had enough money to start a business.
A massive 93% claimed to have calculated their operational time frame at under 18 months with their initial capital.
(Small Biz Trends)
19. It’s Common for Startups to Go Through Three Rounds Before They Reach Series A Funding.
What is Series A funding? Series A funding occurs after seed funding. In this round of startup funding, the founder(s) needs a solid business model for generating long-term profit.
Series A rounds are capable of raising around $2 to $15 million, though this figure is usually higher in the tech industry.
In 2021, $10 million was the startup statistics figure for the median amount of funding.
20. Startup Statistics Show that The Odds of Achieving Unicorn Status Are only 1%.
Just because statistically, only 1% of startups reach unicorn status ($1 billion or more in value), doesn’t mean you shouldn’t start your business.
If that’s how it worked, fewer people would have found startups.
Besides the fact that 90% of startups fail, 67% of startups come to a halt during the VC process, failing to raise more funding or to exit.
FinTech Startup Statistics 2022
This section will address the main financial and technical startup statistics that you need to know.
FinTech (financial technology) is the technology that makes financial transactions simpler and more accessible to businesses and consumers alike.
This technology includes such things as artificial intelligence (AI), encrypted blockchain, and big data. It’s used to facilitate secure transactions within an internal network.
Let’s see what the data shows us about FinTech.
21. 2018 Figures Show that Total Investments in Startups in The FinTech Sector Accounted for More than $254 Billion.
More than 18,000 FinTech startups received these investments. Over 12 months’ time (2017 to 2018), this growth increased by 40%.
The highest amount of FinTech investment growth was seen in the United Kingdom in 2019.
The total investment came to $4.9 billion, which represents an increase of $3.6 billion over the previous year.
22. Research Says that Successful FinTech Startups Will Concentrate on More Continuous User Testing Combined with Data-Driven Iteration, Instead of Developing New Tech.
New, winning startups have a huge opportunity for success these days without developing new technology.
The concept of combining continuous and early user testing and data-driven iteration creates the ideal dynamic fit for new FinTech firms.
In today’s realm of “meaningful evolution”, that’s where successful FinTech firms are headed.
Existing AI is showing excellent promise, which will lead the evolution of new FinTech firms.
(McKinsey & Company)
23. Roughly 80% of Financial Institutions Have Already Started Partnering with FinTech Firms.
The statistics show that 80% of financial institutions like banks, lenders, etc. have already entered into partnerships with FinTech service providers.
In 2018, global venture capital FinTech investment achieved $30.8 billion, which was an increase over the 2011 figure of $1.8 billion.
(McKinsey & Company)
24. 2018 Data Cites the Average Investment in Blockchain Technology and Cryptocurrency Saw a Boost of More than $1 Million.
In a CoinDesk article from 2018, VC investments into Blockchain Startups were up by 280%. This figure represents nearly triple 2017’s total.
Diar, a blockchain research group, reported that cryptocurrency and blockchain centric startups raised almost $3.9 billion via VA investments just in the first three quarters of 2018.
25. The Total FinTech Market Features 9 VC-Backed Unicorns that Are Worth a Combined Total of $147.37 Billion.
In 2018 alone, 1,700 FinTech startup deals were made worth almost $40 billion.
Startup statistics show that FinTech is growing at the global level with investment deals outside its core markets.
The United States maintained the top market for investment deals with funding of $11.89 billion over 659 investments.
Both of these were new annual highs. The 39 VC-funded FinTech unicorns are worth a combined total of $147.37 billion.
26. The Biggest Challenge Facing FinTech Startups Involves Getting Customers.
Customer acquisition is the biggest challenge for FinTech startups. The competition is fierce, so partnerships are not just inevitable, but necessary for success.
So, not only do new financial startups have to determine and target their audience.
They also have to determine where to find partnerships. To get traction, they need early adopter customers to curb costs.
(Tearsheet, Forbes 3)
27. Over 12,000 FinTech Startups Exist Across the Globe.
The United States is the most popular country for FinTech Startups based on 2018 startup statistics.
In the United States alone, there are 5,779 FinTech startups among the total 12,000 all over the world.
As of 2018, around 70% of top banking executives are collaborating with BigTechs and FinTechs to create a new service, which is vital to banking opportunities.
Technology Startup Statistics 2022
Technology startup statistics are huge, as proven by the following startup stats.
The United States is home to the largest tech market on the globe. It accounts for about $1.6 trillion, as reported in 2019.
The key categories of technology include software (22%), infrastructure and devices (18%), business services and IT (28%), emerging technology (13%), and telecom services (19%).
29. Between 2007 and 2016, Electronics and Computer Manufacturing Startups Have Grown by 78%.
In less than 10 years, manufacturers of electronics and computers have seen an exponential growth of 78%.
This is one level of proof that technology startups can and do support the United States economy and its growth.
It doesn’t hurt that jobs in the tech sector pay better and that they offer longer-lasting jobs than the other types of startups.
Therefore, these startups currently drive the US economy.
30. Each Year, the United States Averages 20 Tech Company Launches that Achieve $100 Million in Revenue.
Over the past 20 years, the United States has consistently generated $100-million stable businesses regardless of the country’s economy.
That doesn’t mean that sectors and locations haven’t changed.
With 20 tech company startups being founded each year that boast $100 million in revenue, the tech industry dominates in the US.
Seventeen of these companies exist in 7 states, which include Texas, New York, Florida, California, Illinois, North Carolina, and Massachusetts.
Industry-Specific Startup Statistics 2022
In this section, we will add a few interesting startup statistics based on specific industries.
31. The Construction Industry Experiences a Failure Rate of 53%, According to 2018 Data.
We know that 90% of all startups may fail, but the construction industry comes in at 53%. It ties with the retail industry.
32. The Overarching Information Industry Suffers a 63% Failure Rate.
In 2018, the information industry experienced a 63% failure rate. It’s the highest of all other industries.
33. 2019 Startup Statistics Reveal that Real Estate Startups Raised $1.9 Billion that Year.
The real estate industry raised so much funding in 2019, that they changed how people buy and sell their homes.
Predictive Startup Statistics 2022
Let’s discuss what the potential future of startups has to offer in this section.
34. The Increase in Unicorns Could Result in More Occurrences in The Coming Years.
It’s a fact that unicorns have become substantially more common since 2013. In fact, the rate of unicorns has experienced a boost of $353.1% between 2013 and 2018.
35. Over the Coming Years, We Will See More College Graduates Become Entrepreneurs.
According to Entrepreneur online, we will see more and more entrepreneurs made right out of college.
Already, more and more young, college graduate entrepreneurs are emerging all over the world.
36. We’ll See More Collaboration Between Startups, Resulting in More Partnerships.
Data from 2020 revealed that we would see more collaborations between startups, and that seems to be coming to fruition. That said, this trend is likely to continue.
37. 60% of Today’s Entrepreneurs Concur that Artificial Intelligence Offers the Most Promise in Forward-Thinking Tech.
While we have seen big strides in artificial intelligence (AI) over the past few years, there is more to come.
Over half (60%) of modern entrepreneurs agree that AI offers the most promise in new tech.
(Silicon Valley Bank)
38. Startup Statistics Show that The Sharing Economy Will Achieve $335 Billion or More in Total Sales by 2025.
It’s just a matter of time until more companies like Uber and Airbnb are launched across the globe.
The biggest prediction is that the sharing economy will grow to $335 billion in sales by 2025.
39. Subscription Boxes Startups Based on Lifestyle, Apparel, Food, and Beauty Will Experience Continued Growth.
As popular as the subscription market is now for food, beauty products, lifestyle, and apparel markets, they are expected to become bigger and more popular in the next few years.
40. By 2025, The Total Green Technology and Sustainability Markets Are Predicted to Achieve $36.6 Billion.
According to experts and startup statistics, the global Green Technology and Sustainability market is expected to grow from the 2020 numbers of $11.2 billion to $36.6 billion in 2025.
(Markets and Markets)
Where Does the Gaming Startups Industry Fit Into the Rankings of Startups?
According to the most recent gaming startup charts, the gaming industry’s distribution of market share accounts for 4.7%.
Which Countries Host the Most Startups?
Startup statistics reveal that the United States is at the top of the startups list at 71,153.
India comes in second with 13,125 and the United Kingdom has 6,220 startups. The United States currently dominates in startups.
What’s the Biggest Reason Startups Fail?
The biggest reason that 90% of all startups fail within 10 years is because the concept has no market.
Now that you’ve read some startup statistics in this article, you should feel more informed about startups.
You know that 90% of startups fail, but people keep coming back for more. That’s persistence. It takes persistence, passion, desire, and money to keep trying for success.
Some startups become unicorns, which are companies with a value of over $1 billion. While only about 1% see that kind of revenue, it’s still worth trying.
Overall, the startup sector is and will continue to be a major driving factor for business growth and global innovation for years to come.
Keep your eyes open for more new startups to achieve unicorn status, and more up-and-coming startups, especially in the FinTech realm.
If you’re in marketing, these startup statistics will serve you well for present and future marketing efforts.