41+ Startup Statistics You Need to Know

Startups are all the rage these days. But what exactly is a startup?

A startup company (or “startup”) is an incorporation or an organization in its early stages, typically characterized by high uncertainty and risk. Startups are pre IPO (before initial public offering) and usually raise funding rounds to keep their growth going. A startup’s success depends on its ability to solve a problem that people care about, and reach scale.

In other words, startups are businesses that are still trying to figure out what works and what doesn’t. They are experimenting with new products, services, business models, business management, and email marketing techniques. As a result, they often have higher levels of uncertainty and risk than more established businesses.

Startups are often lauded for their innovation, creativity, and risk-taking. But they are also subject to higher rates of failure than more established businesses. This is why it is very important to know some Startup statistics before jumping into the innovation world.

In this article, let’s take a look at some Startup statistics that can help you get a head start on your business!

General Startup Statistics

1. Around 13% of all business establishments are startups

(Office of Advocacy, 2021)

Takeaway: Startups are taking the modern world by a storm, which is why according to this statistic, 13% of all business establishments are startups. This is a very encouraging statistic for those who want to take the plunge and start their own business. There is definitely a demand for new companies, and startups are meeting that demand. Of course, starting a business is not without its challenges. Startups have high rates of failure, so it is important to be aware of the risks involved. Still, this statistic shows that starting a business can be a very rewarding experience, both financially and personally. If you have an entrepreneurial spirit and are willing to take on some risks, then starting a business might be the right path for you.

2. 75% of business owners use their personal savings for launching a startup

(Office of Advocacy, 2022)

Takeaway: This statistic shows that starting a business can be a very costly endeavor. Most startup owners have to dip into their personal savings to get their business off the ground. This can be a risky proposition, as you may not have enough money to sustain your lifestyle and your business at the same time. If you are thinking of starting a business, make sure you have written a solid financial plan in place. You don’t want to end up in debt or worse, bankrupt. So, according to the statistic, 75% of business owners use their personal savings for launching a startup.

3. There are more than 1000 unicorns in the world. A unicorn is a private startup company that reaches a value of $1 billion

(CB Insights 2022)

Takeaway: This statistic shows that there are a lot of very successful startups in the world. A unicorn is a private startup company that reaches a value of 1 billion dollars. So, according to this statistic, there are more than 1000 unicorns in the world. This is an impressive feat, and it just goes to show how much potential there is in the startup world. If you are thinking of starting a business, this should give you some encouragement. There are many success stories out there, and you could be one of them. Of course, it takes a lot of hard work, dedication, and luck to achieve this level of success. But if you have what it takes, the sky is the limit.

4. Although Europe generates more than a third of global startups but only produces 14% of unicorns

(McKinsey & Company)

Takeaway: This statistic shows that Europe is a hotbed for startups, but only a tiny percentage of them become unicorns. A unicorn is a private startup company that reaches a value of $ billion. So, according to this statistic, only 14% of European startups become unicorns. Even though the percentage of unicorn companies from Europe is low, but it still shows hope that your startup could be the next big thing. With the right amount of hard work and dedication, your startup could achieve great things.

5. The total value of all US unicorns is $929 billion

(Statista)

Takeaway: This statistic shows that the US is home to many successful startups. A unicorn is a private startup company that reaches a value of $ billion. So, according to this statistic, the total value of all US unicorns is $ billion. This is an impressive figure, and it just goes to show how much potential there is in the startup world. This indicates that the US is a great place to start a business. There are many success stories out there, and you could be one of them. Of course, it takes a lot of hard work, dedication, and luck to achieve this level of success. But if you have what it takes, the sky is the limit.

6. The top three largest unicorns or startups in the world are SpaceX, Stripe, and UiPath

(Statista)

Takeaway: This statistic shows that the top three largest startups in the world are SpaceX, Stripe, and UiPath. These companies are worth billions of dollars, and they are all doing very well. This just goes to show how much potential there is in the startup world. If you have a great idea, there is a chance that it could become a very successful business. Of course, it takes a lot of hard work, dedication, and luck to achieve this level of success. These top three startups launched their success story from scratch and are now worth billions. So, if you have what it takes, don’t give up on your dreams.

7. There are only two startups in the world with a value of over $100 billion – ByteDance and SpaceX

(CB Insights)

Takeaway: This statistic shows that there are only two startups in the world with a value of over $100 billion. These companies are ByteDance and SpaceX. They are worth billions of dollars, and they are both doing very well. SpaceX is the company of the well-renowned figure Elon Musk and ByteDance is the company behind the popular app TikTok. This just goes to show how much potential there is in the startup world. If you have a great idea, there is a chance that it could become a very successful business. Of course, it takes a lot of hard work, dedication, and luck to achieve this level of success.

8. ByteDance became the first startup in the world to reach the level of “hectocorn” and cross the $100 billion mark

(CB Insights)

Takeaway: This statistic shows that ByteDance became the first startup in the world to reach the level of “hectocorn” and cross the $100 billion mark. A hectocorn is a private company that reaches a value of $100 billion. So, according to this statistic, ByteDance is now worth $100 billion. This figure highly motivates all the techies out there who have a great business idea in mind and are only in need of implementation.

9. The students of Standford University have the most startups in the world, with 465 graduates having their own startup

(Statista)

Takeaway: This statistic shows that the students of Standford University have the most startups in the world, with 465 graduates having their own startups. This just goes to show how much potential there is in the startup world. All the fresh graduates now have a new goal to achieve. Not only do they want to get a job at a good company, but they also want to start their own business and be their own boss. This is a great motivation for all the students out there who are looking to enter the startup world.

10. The average of female-founded startups is around 20%

(Statista)

Takeaway: This statistic shows that the average of female-founded startups is around 20%. This means that out of all the startups in the world, only 20% are founded by women. This is a low number, and it just goes to show how much potential there is for women in the startup world. There are many successful women entrepreneurs out there, and this number is only going to increase in the future. So, if you are a woman with a great business idea, don’t let anyone stop you from achieving your dreams.

11. Startups created over three million jobs in the world in 2020

(Statista)

Takeaway: Now that the world is facing a major employment crisis, this statistic serves to act as a beacon of light. This statistic shows that startups created over three million jobs in the world in 2020. This is a very positive number, and it just goes to show how much potential there is in the startup world. If you have a great idea, you should definitely try to start your own business. Not only will you be your own boss, but you will also have the potential to create jobs for other people.

12. Older entrepreneurs are more likely to succeed in their startups

(Kellogg Insights)

Takeaway: This statistic shows that older entrepreneurs are more likely to succeed in their startups. This is great news for all the experienced entrepreneurs out there who are looking to start their own businesses. It just goes to show that age is not a barrier to success. If you have a great idea and the experience to back it up, you have a very good chance of making your startup a success.

13. According to Forbes “America’s Best Startup Employer” list, Commonwealth Fusion is the top employer of 2022

(Forbes)

Takeaway: This statistic shows that Commonwealth Fusion is the top employer of 2022, according to Forbes’s “America’s Best Startup Employer” list. This is great news for all the job seekers out there who are looking to enter the startup world. If you are looking for a great place to work, Commonwealth Fusion is definitely a good option. This statistic also provides motivation to all the entrepreneurs out there who are looking to start their own businesses. If you have a great idea, you could potentially be the top employer of 2022.

14. US startups alone raised an amount of $311 billion in 2022

(CB Insights)

Takeaway: This statistic shows that US startups raised an amount of $311 billion in 2022. This is a huge number, and it just goes to show how much potential there is in the startup world. If you have a great idea, you should definitely try to start your own business. There is a lot of money to be made in the startup world, and you could potentially become very wealthy. Startup ventures like SpaceX and ByteDance are the living proof of this.

15. In 2021, all-female startups raised 25% less than the all-male startups

(DocSend)

Takeaway: This statistic is a bit disheartening, but it just goes to show how much work still needs to be done in order to achieve gender equality in the startup world. This statistic shows that in 2021, all-female startups raised 25% less than all-male startups. This is a huge disparity, and it just goes to show how much more difficult it is for women to get funding for their businesses. However, this statistic also provides motivation to all the female entrepreneurs out there who are looking to start their own businesses. If you have a great idea, don’t let anyone stop you from achieving your dreams.

Tech Startup Statistics

16. The value of the Global tech industry stands at $5.3 trillion

(Statista)

Takeaway: This statistic shows that the value of the global tech industry stands at $53 trillion. This is a huge number, and it just goes to show how much potential there is in the tech startup world. The world of technology is the best domain to launch a startup as it is not growing at a very rapid rate but also allows to create massive room for innovation and new inventions. This is why the tech industry occupies a major portion in the startup ecosystem.

17. 90% of successful tech startups are currently in the product and in the market

(Mckinsey & Company)

Takeaway: This statistic is very encouraging for all the tech entrepreneurs out there who are looking to start their own businesses. It shows that 90% of successful tech startups are currently in the product and in the market. This means that if you have a great idea, there is a very good chance that you will be able to make your startup a success. However, this statistic also highlights the importance of timing. If you want to be a successful tech entrepreneur, you need to make sure that you are in the right place at the right time.

18. The average age of a tech startup founder is 45 years

(Kellogg Insights)

Takeaway: This statistic shows that the average age of a tech startup founder is 45 years. This is a bit older than the average age of a startup founder, which is 39 years. However, this is not surprising given the fact that the tech industry is generally more mature than other industries. This statistic also highlights the importance of experience in the tech world. If you want to be a successful tech entrepreneur, you need to make sure that you have the right skills and experience.

19. The most successful tech startup in the world is ByteDance and is valued at $350 billion

(Statista)

Takeaway: This statistic shows that the most successful tech startup in the world is ByteDance and is valued at $350 billion. This just goes to show how much potential there is in the tech startup world. If you have a great idea, you could potentially become very wealthy. ByteDance is a company that is known for its social media app TikTok. The company has been very successful, and it just goes to show that there is a lot of money to be made in the tech startup world.

20. The average funding that most tech companies require is between $100 million and $220 million to reach unicorn status as a startup

(McKinsey & Company)

Takeaway: This statistic shows that the average funding that most tech companies require is between $100 million and $220 million to reach unicorn status as a startup. This just goes to show how much money it takes to be a successful tech entrepreneur. If you want to be a successful tech entrepreneur, you need to make sure that you have access to the right amount of funding.

21. Raising $105 billion for startup funds, Silicon Valley is the tech hotspot, making San Francisco the tech capital of the world

(CB Insights)

Takeaway: This statistic shows that Silicon Valley is the tech hotspot, making San Francisco the tech capital of the world. This is not surprising given the fact that Silicon Valley is home to some of the most successful tech companies in the world. Silicon Valley also provides funding for new startups, which is why it is the perfect place to launch a tech startup.

22. It takes on average 10 years for a European tech startup to reach the level of a unicorn company

(McKinsey & Company)

Takeaway: This statistic shows that it takes on average ten years for a European tech startup to reach the level of a unicorn company. This is a bit longer than the average time it takes for a tech startup to reach unicorn status in the US, which is seven years. However, this is not surprising given the fact that the European tech industry is not as developed as the US tech industry. This statistic highlights the importance of patience and perseverance in the tech startup world. If you want to be a successful tech entrepreneur, you need to be willing to wait for your company to reach its full potential.

Construction Startup Statistics

23. There are over 6.2K construction startups in the world

(Tracxn)

Takeaway: This statistic shows that there are over 6.2K construction startups in the world. This just goes to show that the construction industry is a very popular industry for startups. If you are interested in starting a construction startup, you should know that there is a lot of competition. However, this also means that there is a lot of potential for success.

24. Construction startups raised more than $5 billion in 2021

(Construction Physics)

Takeaway: This statistic shows that construction startups raised more than $5 billion in 2021. This just goes to show how much money is being invested in the construction startup industry. If you are thinking about starting a construction startup, you should know that there is a lot of potential for success in the construction sector.

25. The estimated funding for construction startups is around $9 billion

(Construction Physics)

Takeaway: This statistic shows that the estimated funding for construction startups is around $9 billion. This just goes to show how much money is being invested in the construction startup industry. If you are thinking about starting a construction startup, you should know that there is a lot of potential for success in the construction sector. You just need the right idea and the right team to launch your construction startup.

26. Construction startups have a 36.4% likelihood of lasting more than 5 years

(Small Business Trends)

Takeaway: This statistic shows that construction startups have a 36.4% likelihood of lasting more than five years. This just goes to show how risky it is to start a construction startup. If you are thinking about starting a construction startup, you need to make sure that you have a solid business plan and the right team in place to make your construction startup successful.

27. Construction startups have a failure rate of 53%

(Failroy)

Takeaway: This statistic shows that construction startups have a failure rate of 53%. This just goes to show how risky it is to start a construction startup. If you are thinking about starting a construction startup, you need to make sure that you have a solid business plan and the right team in place to make your construction startup successful.

Real Estate Startup Statistics

28. Real Estate startups generated a revenue of more than $32 billion

(CRETI)

Takeaway: This statistic shows that real estate startups generated a revenue of more than $32 billion. This just goes to show how much money is being invested in the real estate startup industry. If you are thinking about starting a real estate startup, you should know that there is a lot of potential for success in the real estate sector. You just need the right idea and the right team to launch your real estate startup.

29. The most popular real estate startup is Airbnb. In 2020, the company secured an investment of $350 million from Silver Lake alone

(Statista)

Takeaway: This statistic shows that the most popular real estate startup is Airbnb. In 2020, the company secured an investment of $350 million from Silver Lake alone. This just goes to show how much money is being invested in the real estate startup industry. If you are thinking about starting a real estate startup, you should know that there is a lot of potential in this sector. But besides a good business plan and the right team, you also need enough knowledge in real estate to make your startup a success.

30. Real Estate startups have a less probability of failure as compared to other industries, around 42%

(Failory)

Takeaway: This statistic shows that real estate startups have a less probability of failure as compared to other industries, around 42%. This just goes to show how risky it is to start a real estate startup. But on the other hand, it is also a safe bet as the probability of success is high. If you are thinking about starting a real estate startup, you need to make sure that you have a solid business plan and the right team in place to make your real estate startup successful.

31. The five-year survival rate for real estate startups is 39.6%

(Small Business Trends)

Takeaway: This statistic shows that the five-year survival rate for real estate startups is 39.69%. This just goes to show how risky it is to start a real estate startup. But on the other hand, it is also a safe bet as the probability of success is high.

Startup Failure Statistics

32. Nine out of ten startups eventually fail

(Investopedia)

Takeaway: This statistic shows that nine out of ten startups eventually fail. This just goes to show how risky it is to start a startup. Before you launch your startup, you need to make sure you host a website on the right platform, have a solid plan for growth, and have the right team in place to make your startup successful.

33. Around 21% of startups fail in the 1st year, 30% during the second year, and around 50% in the fifth year. Only 10% of the startups fail in their 10th year

(Investopedia)

Takeaway: This statistic shows that around 21% of startups fail in the first year, 30% during the second year, and around 50% in the fifth year. Only 10% of startups fail in their tenth year. This just goes to show how risky it is to start a startup. But on the other hand, it is also a safe bet as the probability of success is high. If you are thinking about starting a startup, you should know that there is a lot of potential for success in the startup industry. You just need the right idea and the right team to launch your startup.

34. Money is the number one reason why startups fail. Around 38% of startups fail due to insufficient funds

(CB Insights)

Takeaway: This statistic shows that money is the number one reason why startups fail. Around 38% of startups fail due to insufficient funds. This just goes to show how important it is to have a solid financial plan in place before you launch your startup. If you are thinking about starting a startup, you should make sure that you have enough funding to sustain your business until it becomes profitable.

35. Around 75% of venture-backed startups never return their initial investment

(Failory)

Takeaway: This statistic shows that around 75% of venture-backed startups never return their initial investment. This just goes to show how risky it is to start a startup. It also indicates how unpredictable it is for the investors who are investing in a startup.

36. Up to 40% of investors lose their entire investments due to startup failure

(Failory)

Takeaway: This statistic shows that up to 40% of investors lose their entire investments due to startup failure. This just goes to show how risky it is to invest in a startup. You should always remember that there is a possibility that you could lose your entire investment if the startup fails.

37. The information industry has the highest rate of startup failure, around 63%

(Failory)

Takeaway: This statistic shows that the information industry has the highest rate of startup failure, around 63%. This just goes to show how risky it is to start a startup in this industry. If you are thinking about starting a startup in the information industry, you should make sure that you have a solid business plan and the right team in place to make your startup a giant success.

38. 37% of startups fail due to a weak founding team

(CB Insights)

Takeaway: This statistic shows that 37% of startups fail due to a weak founding team. This just goes to show how important it is to have the right team in place when you launch your startup. If you are thinking about starting a startup, you should make sure that you have a strong team of co-founders who are passionate about your business idea and share the same business goals as you.

39. 90% of startups are bound to fail due to multiple reasons

(Failory)

Takeaway: This statistic shows that 90% of startups are bound to fail due to multiple reasons. This just goes to show how risky it is to start a startup. You should always remember that there is a possibility that your startup could fail no matter how good your business idea is or how strong your team is.

40. Another common reason for startup failure is the product-market fit, around 42%

(CB Insights)

Takeaway:

This statistic shows that another common reason for startup failure is the product-market fit, around 42%. This just goes to show how important it is to have a strong product-market fit when you launch your startup. If you are thinking about starting a startup, you should make sure that your product is appealing to your target market and that there is a demand for your product.

Wrapping Up

Having your own startup is definitely not a walk in the park. It takes a lot of hard work, dedication, and determination to make your startup a success. However, it is definitely worth it if you are able to pull it off. These startup statistics just go to show how risky it is to start your own business. But if you have a solid business plan and the right team in place, you have a higher chance of making your startup a success.

Did you find this article helpful? Share your thoughts with us in the comments below!

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