Updated · Jan 29, 2023
The world of startups is booming. From healthcare to shared apartments, they’re taking over the world.
In fact, at times you might feel overwhelmed by too much information.
That’s why we’ve gathered the most valuable startup statistics in one place. By the end of this article, you’ll have a clear view of the big picture. Here’s a taste:
Eye-Opening Startup Statistics
- About 90% of new startups fail.
- Bytedance is the top valued startup, valued at $75 billion.
- In 2020, 65% of UK adults wanted to start their own business.
- Silicon Valley was the top startup ecosystem in 2021.
- In 2020, there were about 475 unicorn companies.
- The median salary for self-employed individuals with incorporated businesses in the US was $50,347.
- One-third of small businesses in the US started with less than $5,000.
Smashing stuff, isn’t it?
Let’s examine these startup stats in greater detail, starting with the newest startup stats for 2022.
Impressive Startup Statistics for 2023
2022 is an interesting year, no one can deny that. But what do all the recent changes mean for startups?
1. According to startup statistics for 2021, January 2020 experienced the highest number of searches for ‘how to start a business’.
(Source: Micro Biz Mag)
In fact, this is the highest search volume since records started back in 2004 in the UK. Specifically, the number of searches made per month is 18,100.
2. In 2020, 65% of adults in Britain wanted to start their own business according to startup statistics for the UK.
(Source: Micro Biz Mag)
This was according to a survey of 1,000 UK adults. Aside from those two-thirds, 21% admitted to not wanting to start their own business, while 14% were unsure.
3. Startup statistics for the US tell us that 43% of their workforce is likely to be freelance by the end the year.
(Source: Fresh Books)
It would appear that the trend is that more and more people are going freelance, particularly in America. One big reason is that new technology is now readily available to support remote working. This is good news for companies that can massively cut their overheads.
4. Just over 50% of UK startups report that lack of finance is a barrier to starting a business.
This was based on startup financing statistics data collected from over 3,000 people through the Startups.co.uk website. The second biggest barrier reported in these startup funding statistics was knowledge (17.7%) followed by confidence (9.4%), legal (5.3%), ideas (4.4%), time (3.2%), and finally, customers (2.9%).
5. Accounting, tax preparation, bookkeeping, and payroll have a net profit margin of 18.4%.
(Source: Hustle Life)
So, if you’re thinking about starting up a business, and wondering which sector could be most profitable, startup growth statistics put a huge focus on those. Alternatively, you could also look into legal services or real estate. Should you choose the latter, you'll need the best tools to do it. That's why we selected the best real estate software on the market.
6. Oil and gas extraction industries have a net profit margin of -6.9%.
(Source: Hustle Life)
This makes them the worst type of startup industry based on the net profit margin. Similarly, software publishers, beverage manufacturing, semiconductor, and other electronic component manufacturing are among industries with a disappointing net profit margin, based on startup company statistics.
7. According to 52% of US small-business owners, venture capital is expected to be their next source of funding.
(Source: Hustle Life)
Money is crucial when setting up a small business. It seems that most business owners in the US will gain funding from venture capital, startup fundraising statistics show. And because around 65% of small business owners say they don’t have the right budget to get their startup rolling, it could be vitally important to access this type of funding.
8. In 2020, people set up 84,758 new companies in the United Kingdom.
(Source: Small Business)
Start-up risk statistics show that, despite most organizations downsizing or closing down due to the pandemic, almost 85K people took the chance to open new establishments in the UK. That was a 12% rise compared to 2019, and the highest it has been since 2011.
9. 82% of successful business owners say they have the right level of experience and qualifications.
(Source: Small Biz Trends)
The most successful entrepreneurs tend to have a good level of self-confidence. Startup statistics for entrepreneurs confirm it: 82% of them say that their level of qualifications and skills are sufficient to run a business, even if they lack a steady cash flow at the beginning.
10. According to worldwide startup statistics, Bytedance was the top valued startup, valued at $75 billion.
If you’re wondering who Bytedance is, they created TikTok’, the short video app as well as news aggregator service Toutiao. Technology startup statistics for venture capital firms indicate they are valued at $75 billion - one of the highest-rated startups around the world.
Startup Funding Statistics
As we all know funding is the second most crucial factor for a successful startup, after having a great idea for one in the first place. That's why we gathered some startup funding stats to show you what the market looks like.
11. Global funding grew by $8 billion in January 2021.
(Source: Tech Crunch)
According to startup statistics for 2021, funding grew by $8 billion in the first month of 2021. That was $16 billion more than in March 2020 when Coronavirus took an immense toll on companies worldwide.
12. ByteDance’s value rose to $250 billion in 2021.
ByteDance is a successful Chinese startup that developed the video-sharing apps Douyin and TikTok. The company has been showing massive growth since its inception.
In 2019, its value was $75 billion. By March 2021, it had grown three-fold and was worth a whopping $250 billion.
13. About 90% of new startups fail.
Different sources claim a different figure here, so keep in mind this is a ballpark estimate. Of course, we mostly hear about the ones that make it big.
Failure rates vary over time, but the bottom line is:
Very few startups survive in the long run.
And just in case you’re wondering what percentage of new businesses fail in the first year...
The answer is approximately 20%.
But why do so many startups sink without a trace?
The market is extremely competitive, and there are plenty of reasons why your startup might go the way of the dodo.
Let’s look at some of the more commonly cited ones:
14. 82% of businesses that go under do so because of cash flow problems.
(Source: Preferred CFO)
There’s more to cash flow than just the amount of money coming in and out. Timing is of the essence.
If you use an invoicing system, and your invoices aren’t paid until after your loan payments are due, that startup failure rate might become all too real for you.
As boring as it sounds, preparing and analyzing the cash flow statements can be key. And, if you can’t be bothered, at least hire a bookkeeper. Or get accounting software that can streamline the process and make it shorter (if not less boring).
15. 34% of businesses that fail do so because they lack a product fit market.
Failory interviewed over 80 discontinued startups to find out why they failed. Over a third of respondents said it was because their product didn’t have a market. Startup survival rate statistics like these show how important it is to invest in proper research to understand what the market needs.
22% of survey respondents quote marketing problems as a hindrance to their success, while 18% said that issues with their team caused them to fail as an entrepreneur.
16. The majority of startup owners are aged between 50 and 59.
(Source: Small Biz Trends)
According to startup statistics for 2021, people between the ages of 50 and 59 are at the top of the startup founders list with 35%. One-fourth are between 40 to 49 years, while those aged 60-69 make up 18%.
At the bottom of the list sit people between the ages of 18 and 29, along with the 70+-year-olds, at 4% each.
Startup Statistics by Country
Here we’ll examine some of the key startup trends worldwide. We’ll begin with a couple of general startup stats before zooming in on the US and Europe. We’ll wrap up this section with a couple of demographics statistics.
17. The number one ecosystem for startups is Silicon Valley.
Surprised it’s not San Francisco?
Here’s why Berlin makes sense:
The German capital has a lower cost of living. It’s consistently ranked as one of the top 15 most liveable cities in the world. It offers a high quality of life and abundant access to office space. At the same time, it's diverse and oriented towards innovations. Entrepreneurs can find funding relatively easy.
Tel Aviv in Israel, the home of world's most innovative startups, ranked second. Somewhat surprisingly, Helsinki came third, ahead of San Francisco, Stockholm, and London.
18. The best country to start a business in 2021 was the UK.
According to business startup statistics, the best country for start-ups is the United Kingdom, with its Gross Domestic Product (GDP) of 2.6+ trillion and a growth rate of 18%.
With a population of 66 million, the UK has a public debt/GDP of 89%. Its trade balance/GDP is -4.4, while its unemployment rate is only about 4.9%.
That’s not all.
You only need £14 (about $20) to incorporate a company, and it only takes an hour. Aside from that, as the founder /investor, you’ll get lots of tax relief. In addition, the country has the lowest corporate taxes compared to others in the G20.
19. At 63%, the information industry had the highest startup business failure rate in 2018, as tech startup statistics show.
This is partly due to its popularity. In many ways, it’s become a victim of its own success.
There are a lot of information startups out there, many of them based on extremely flimsy premises.
Construction had the second-highest failure rate with 53%. And the lowest?
Finance insurance and real estate had the lowest failure rate of surveyed industries with 42%. However, that’s still nearly one out of every two startups.
20. Investment funding in China dropped by 50% in 2020.
(Source: TNW)Global funding declined by 20% on a worldwide scale in 2020. China suffered the most significant investor pullout by 50%. In 2021, things are starting to pick up, but still much slower than they were pre-pandemic.
Moving on to:
Startup Statistics for the US
Here are fascinating stats about startups in the United States.
21. The rate at which startups were becoming unicorns in the US in 2018 had increased by 353.1% compared to 2013.
The weird term “unicorn” refers to startups valued at over $1 billion. When Aileen Lee, a former Kleiner Perkins partner, coined it in 2013, there were just 39 companies that merited the title.
So, how many are there now?
22. In 2020, there were 475 “active unicorns” in the world.
(Source: CB insights)
This is crazy:
They are worth a whopping $1.394 trillion. The latest data shows it only takes the average billion-dollar US startup six years to achieve such status. That number is down from seven and a half years in 2015.
23. One-third of small businesses in the US start with less than $5,000.
Another 58% started with less than $25,000 in startup funds. However, 65% of survey respondents admitted to not being fully confident they had enough money to start their business.
24. The median salary for self-employed individuals with incorporated businesses in the US was $50,347.
The reality is that most startups finance their businesses with credit cards, savings, or crowdfunding. Additionally, startup funding stats show that tech startups are more likely to catch the eye of an investor.
25. Venture capitalists invested $156 billion in 2020.
(Source: Tech Crunch)
That was up by 56 billion from the year before. The amount translates to about $428 million per day. Seeing that American startups made $291 billion in revenue, the investments paid off.
26. Less than 1% of startups get funding from investors.
This should come as no surprise, given how competitive the market is at the moment. If you want to attract funding, you must be at the top of your game.
27. EdTech was the best industry for startups in 2021.
(Source: Geo Motiv)
Due to the pandemic, education has shifted from in-person to online sessions. Because of this, the education technology sector turned out to be the most lucrative in 2021.
63% of industry players predict that by 2030, most universities will allow full-time digital courses. Demand for online learning tools also led to expenditure worth $227 billion in 2020. Experts predict that will rise to $404 billion by 2025.
Startup Statistics for Europe
Europe is also not left behind.
Check this out:
28. The total number of investments in startups in Europe in the first half of 2019 was 2301.
This figure had nearly doubled in just three years. In the first half of 2016, it stood at only 1214.
29. More than 90% of European startups rate their business situation as good or satisfying.
(Source: European Startup Monitor)
This shows a massive difference from the doom and gloom of the 2007-2008 global financial crisis and its immediate aftermath. Back then, business confidence was at an all-time low, and forecasts were dire. Now, the relatively slow, but steady Eurozone economic growth rates are contributing to positive small business trends.
30. 64% of European startup founders stated they would choose Europe over the US if they had to start over again.
(Source: Startup Heatmap Europe)
The percentage is highest in the Benelux countries (nearly 85%) and lowest in the UK & Ireland (just under 50%). European startup founders consider talent and value for money to be Europe’s major strengths compared to the US.
31. 60% of European startup founders stated that they had traveled to the US at least once for their current startup.
(Source: Startup Heatmap Europe)
This ties in with European business owner’s desire to expand internationally and create more startup jobs around the world. The widely-held belief that the American entrepreneurial spirit is second to none also contributes to this growing trend.
32. Medical supplies had the biggest growth in 2020 in the UK.
(Source: Small Business)
According to startup growth statistics, ecommerce showed an 88% growth in 2020. The sector saw 12,490 new registrations. Clothing was the second most improved and went up by 55%, while medical supplies showed the most growth going up by 176%!
Startup Demographic Statistics
Are men or women more likely to dabble in startups?
Let’s find out:
33. Women own 36% of small businesses.
(Source: Legal Jobs)
Just five decades ago, the idea of women starting businesses would have been highly unlikely. However, things are changing as more women get the determination to pursue their passions. Today, 36% of small businesses worldwide are owned by women.
34. In 2020, 15.5% of entrepreneurs in Europe were women.
(Source: Startups and Places)
Startup financing statistics show that the European business atmosphere is not as inclusive as the US when it comes to gender. In a survey of 20,000 European businesses, researchers found that only 15.5% belonged to women. Women also received 38% less funding when under the same circumstances as their male peers.
35. 9 of the 21 co-founded startup companies in the US, which earned more than $20 million in annual revenue in 2018 had an all-female co-founding team.
The remaining 12 had male/female co-founders. None had an all-male co-founding team!
Here’s looking at you, female startup co-founders!
So, what’s the latest news from the world of startup stats?
We’ve already mentioned that several startup-hubs, such as Vancouver and Berlin, have successfully challenged Silicon Valley’s dominance over the last couple of years.
A growing number of startup founders are leaving the Silicon Valley “bubble” and heading east. Cities like New York offer a skilled workforce, easy access to investors, and proximity to finance and retail industries. This is something else to consider when you’re deciding where to launch your would-be billion-dollar startup.
Speaking of which:
Here’s a list of seven such companies you should keep an eye on, complete with their estimated market value as of March 2019. It makes for some impressive startup statistics:
- Health Catalyst - healthcare analytics platform - $1 billion
- Nuro - autonomous delivery vehicles - $2.7 billion
- Flexport - freight logistics platform - $3.2 billion
- Horizon Robotics - artificial intelligence technology - $3 billion
- Danke Apartment - apartment rental platform - $2 billion
- Chime - mobile banking platform - $1.3 billion
- Glossier - online beauty brand - $1.2 billion
Startup Fun Facts
Are you not entertained? Then try these on for size:
36. Successful startups are thrice more likely to have a 60-year-old founder than a 30-year-old one.
But there are even more curious startup statistics on the subject:
He or she is also 1.7 times more likely to found a startup that ends up in the top 0.1% of all companies! Experience matters. Having a smashing idea is all well and good, but having the know-how to execute it can make all the difference.
So, if you were thinking to yourself:
“That (startup) ship has sailed.”:
Think again - you’re never too old to join the growing number of entrepreneurs who own profitable startups.
37. Entrepreneurs in Ecuador comprised 30% of the adult population, making it the most entrepreneurial country in the world.
This stat is one for trivial pursuit. For comparison, in the US "only" 14% of the population are entrepreneurs.
38. Stanford was the university with the highest number of startup founders in 2020.
In 2020, Stanford produced 465 startup founders. MIT was second with 367, while Harvard University had 293 graduates that established business.
While a handful of juggernauts like Uber dominate the headlines, there are many other rising stars. Unicorns are no longer as elusive as they once were.
Startups have increased in numbers and value over the last few years. So have funding and capital for these types of companies. The market is offering a great set of automation tools, which come in useful especially for startup businesses.
To have an idea: Payroll manager facilitates salary calculations and tax filling, while project management software is good for organizing your team tasks in a timely manner.
With the right approach and carefully selected tools, you might be the next Uber.
So, if you fancy catching your very own, these crucial startup statistics will hopefully set you on your way.
What percentage of startups succeed?
How many startups start every year?
What percentage of startups fail in the first year?
Which type of startups are most profitable?
Bobby Chernev, editor at TechJury.net. A historian and political scientist by training, he is passionate about quality research and writing in different fields. He's also a general sports fan, a devotee of cask ale, and an avid reader of fiction and non-fiction.
Latest from Author
Your email address will not be published.
Updated · Jan 28, 2023
Updated · Jan 27, 2023
Updated · Jan 26, 2023