
Muninder Adavelli
Updated · May 30, 2023
Bobby Chernev, editor at TechJury.net. A historian and political scientist by training, he is passio... | See full bio
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:
Smashing stuff, isn’t it?
Now:
Let’s examine these startup stats in greater detail, starting with the newest startup stats for 2022.
2022 is an interesting year, no one can deny that. But what do all the recent changes mean for startups?
(Source: First Site Guide)
Among startups, the Fintech industry has the highest distribution and is the most popular.
The Life sciences and healthcare industry comes in second with 6.8%, followed by Artificial intelligence with 5.0%, Gaming at 4.7%, Adtech at 3.3%, and Edtech at 2.8%.
Although the exact distribution of industries is not entirely certain, it is evident that startups nowadays are drawn towards digital technologies and the internet. By examining this data, we can determine which industry is currently most favourable for startups.
Startups |
Percentage of distribution in the industry |
Fintech |
7.1 |
Life Sciences and Health Care |
6.8 |
Artificial Intelligence |
5 |
Gaming |
4.7 |
AdTech |
3.3 |
EdTech |
2.8 |
CleanTech |
2.1 |
BlockChain |
1.5 |
Robotics |
1.3 |
Cybersecurity |
0.7 |
Agtech |
0.6 |
(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.
(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.
(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.
(Source: Startups)
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%).
(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.
(Source: Demand Sage)
In 2022, the United States witnessed the emergence of 5,779 new startups, adding to the consistently rising number of startups in the country. Presently, the total count of startups in the US exceeds 72,500.
To provide a comparison, the number of startups established in the US in 2022 surpasses the combined count of startups in Canada and Australia, which hold the 4th and 5th positions, respectively, in terms of the total number of startups.
Country |
Number of Startups |
The USA |
72,560 |
India |
13,905 |
The UK |
6,396 |
Canada |
3,446 |
Australia |
2,399 |
Indonesia |
2,391 |
Germany |
2,320 |
France |
1,579 |
Spain |
1,411 |
Brazil |
1,165 |
(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.
(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.
(Source: Small Business)
In the course of the year, there was a 4.3% increase in the number of newly registered companies, which reached 805,141, as compared to 771,617 in 2021.
Additionally, the overall count of registered companies climbed to an unprecedented level, reaching 5,236,227 by the end of the year, indicating a 4.6% rise from the previous year's total.
(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.
(Source: CNBC)
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.
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.
(Source: Tech Crunch)
There was a 35% decrease in global venture funding in 2022, which amounted to $445 billion. This figure is lower than the $681 billion invested in 2021.
However, despite the decrease in funding, investors still allocated $100 billion more in 2022 compared to the $342 billion invested in 2020.
(Source: Failory)
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:
(Source: Preferred CFO)
There’s more to cash flow than just the amount of money coming in and out. Timing is of the essence.
For example:
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).
(Source: Failory)
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.
(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.
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.
(Source: TNW)
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.
(Source: Digital)
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.
(Source: Failory)
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.
(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:
Here are fascinating stats about startups in the United States.
(Source: TechCrunch)
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?
(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.
(Source: Kabbage)
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.
(Source: Forbes)
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.
(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.
(Source: Medium)
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.
(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.
Europe is also not left behind.
Check this out:
(Source: Statista)
This figure had nearly doubled in just three years. In the first half of 2016, it stood at only 1214.
(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.
(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.
(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.
(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%!
Are men or women more likely to dabble in startups?
Let’s find out:
(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.
(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.
(Source: Medium)
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.
Now:
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:
And finally:
Are you not entertained? Then try these on for size:
(Source: Inc.)
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.
(Source: Medium)
This stat is one for trivial pursuit. For comparison, in the US "only" 14% of the population are entrepreneurs.
(Source: Statista)
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.
Bobby Chernev
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.
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