38 of The Catchiest Startup Statistics for 2024

Given the increasing growth of the digital economy, which contributes to 15% of the global gross domestic product, the rise of startup companies has become a global phenomenon. 

The World Economic Forum predicts that 70% of the new value created worldwide will be based on digital business models. With greater access to capital, ongoing technological advancements, innovation-focused entrepreneurship, and changing consumer preferences, startups will continue to dominate the market. 

Read more about how startup companies are changing the business landscape through these valuable startup statistics. 

Editor’s Choice

• 7.1% of the startups in the world operate in the Fintech industry.
• About 90% of new startups fail.
• The USA leads the way when it comes to the number of startups.
• Bytedance is the top-valued startup, valued at $75 billion.
• In 2020, 65% of UK adults wanted to start their own businesses.
• 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.

Impressive Startup Statistics for 2023

The startup industry continues to thrive as more people venture into entrepreneurial endeavors because of the freedom, satisfaction, and flexibility they offer. 

Learn more about the startup industry’s growth and entrepreneurs’ motivations as they navigate the ever-evolving startup ecosystem. 

1. The Fintech industry has 7.1% of the total number of startups worldwide.

(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 favorable for startups.

Global Industry Distribution of Startups 2022

2. According to startup statistics for 2021, January 2020 experienced the highest number of searches for ‘how to start a business’.

(Micro Biz Mag)

Since records started in 2004 in the UK, internet users have searched ‘how to start a business’ in January 2020 with the highest search volume. Specifically, the number of searches made per month is 18,100. 

3. In 2020, 65% of adults in Britain wanted to start their own business according to startup statistics for the UK.

(Micro Biz Mag, SME Loans)

According to a survey of 1,000 UK adults in January 2020, 65% of the population of UK workers were willing to start a business, 21% admitted they would not, and 14% were unsure. 

As demonstrated by the figures above, the entrepreneurial aspirations of British people are high. Among the motivations that push them to set up their businesses include job dissatisfaction, aspirations for financial gain, and flexibility of working from home.

4. 43% of the US workforce will likely be freelance by the end of 2020.

(Fresh Books, Flexiple)

There is a steady increase in freelancers in the US due to new technologies now available for remote work. This also brings good news for companies to cut their overheads massively.

By 2027, the number of skilled individuals freelancing will be predicted to reach approximately 86.4 million. This marks how freelancing businesses are gaining momentum throughout the years. 

5. Just over 50% of UK startups report that lack of finance is a barrier to starting a business.

(Startups)

According to 3,000 participants, most of their business challenge stems from a lack of finance. Since starting a new business requires a lot of capital, most startups work hard to find investors to fund their companies. 

Following the lack of finances, here are the other barriers experienced by most start-ups:

• Knowledge (17.7%)
• Confidence (9.4%)
• Legal (5.3%)
• Ideas (4.4%)
• Time (3.2%)
• Customers (2.9%)

6. Accounting, tax preparation, bookkeeping, and payroll have a net profit margin of 18.4%.

(Hustle Life)

Financial management industries have high-profit margins because they rely heavily on qualified professionals to provide services, not on machines or expensive overhead costs. 

7. There are around 72,560 startups around the USA.

(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. 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.

The growth hacks that made these startups

Top 10 Countries with the Most Startups:

8. Oil and gas extraction industries have a net profit margin of -6.9%.

(Hustle Life)

Oil and gas extraction is the most challenging type of startup industry based on the net profit margin because the extraction process is so expensive.  

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.

9. According to 52% of US small-business owners, venture capital is expected to be their next funding source.

(Hustle Life)

Money is crucial when setting up a small business. Most business owners in the US will gain funding from venture capital. Around 65% of small business owners say they don’t have the proper budget to get their startup rolling, and it is essential to access the said funding.

How to get funding
by u/No-Ad980 in Entrepreneur

10. The UK saw a 4.3% rise in new company formations in 2022.

(Small Business)

In 2022, there was a 4.3% increase in newly registered companies, which reached 805,141, 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.

11. 82% of successful business owners say they have the right level of experience and qualifications.

(Small Biz Trends)

The most successful entrepreneurs have a good level of self-confidence. Startup statistics for entrepreneurs confirm it: 82% say that their qualifications and skills are sufficient to run a business, even if they initially lack a steady cash flow. 

12. According to worldwide startup statistics, Bytedance was the top-valued startup, valued at $75 billion.

(CNBC)

Bytedance developed TikTok and the news aggregator service Toutiao. Technology startup statistics for venture capital firms indicate Bytedance has a value of $75 billion – one of the highest-rated startups around the world.

Startup Funding Statistics

There are various ways to get startup funding. Startup investments may come from family, friends, angel investors, and venture capitalists. With a profitable market, ample research, and strong connections, startups are sustainable. 

Here are some statistics about the rise and fall of startups worldwide. 

13. Global venture funding in 2022 reached $445 billion.

(Tech Crunch, Crunchbase)

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.

Among the reasons for the decline in funding include the collapse of Silicon Valley on March 10, which affected 20,000 startup depositors with $5 million or less in revenue. 

Startups were also adversely affected by the difficulty of investors and founders to gather funds to meet the payroll due to the number of startups that will face possible closure due to lack of funds. 

14. About 90% of new startups fail.

(Failory)

Failure rates vary over time, but the bottom line is that only some startups survive in the long run.

Approximately 20% of new businesses fail in the first year because the market is highly competitive.

15. 82% of businesses that go under do so because of cash flow problems.

(Preferred CFO)

There’s more to cash flow than just the amount of money coming in and out. Timing is important. 

If you use an invoicing system, a startup failure rate might become too real when you cannot clear invoices and loans. 

Preparing and analyzing cash flow statements is essential. Knowing the top online bookkeeping services based on certification, security, targeted business, and cost is vital in achieving time efficiency. 

16. 34% of businesses fail because they lack a product-fit market.

(Failory)

Out of 80 discontinued startups, over a third of respondents said their product didn’t have a market. Startup survival rate statistics show the importance of investing 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. 

17. The majority of startup owners are aged between 50 and 59.

(Small Biz Trends)

In 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 and 49 years, while those aged 60-69 comprise 18%.

In a survey of 2,600 entrepreneurs in the US, 42% of entrepreneurs over 50 said they started their businesses to pursue their passion, 36% said “opportunities were presented to them,” 22% said they are dissatisfied with their work, and 15% started their businesses after losing their jobs. 

At the bottom of the list sit people between 18 and 29, along with the 70+-year-olds, at 4% each.

Startup Statistics by Country

Although most high-value startups are primarily centered in a few countries like the US, Europe, China, and India, entrepreneurs are capitalizing on technological opportunities, eCommerce, healthcare, sustainability, cleantech, remote work, and education in various parts of the world. 

Know more about the sporadic expansion of startups worldwide through these statistics. 

18. The number one ecosystem for startups is Silicon Valley.

(TNW, N Business)

Despite the annual decline of venture funding by 35% in 2022, Silicon Valley remains the top choice for start-up companies to start their business ventures. New York and London follow it. 

Although Silicon Valley is the preference for the many, cities in the Mena region are rising. Based on value, here are the top 5 startup ecosystems in the said region from 2020-2022:  

• Tel Aviv ($235 billion)
• Dubai ($21 billion)
• Riyadh ($10 billion)
• Cairo ($8 billion)
• Abu Dhabi ($4 billion)

19. The best country to start a business in 2021 was the UK.

(Digital)

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%. 

In the UK, you only need £14 (about $20) to incorporate a company, which 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.

20. In 2018, the information industry had the highest startup business failure rate at 63%.

(Failory)

Construction had the second-highest failure rate, with 53%. Meanwhile, 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.

Based on an in-depth interview with founders of 80+ failed startups, the common reasons why they stopped operating are the following: 

• Lack of product-market fit (34%)
• Marketing problems (22%)
• Team problems (18%)
• Legal problems (2%)
• Operations problems (2%)
• Tech problems (6%)
• Finance problems (16%)

Although the reasons vary, companies must consider these factors establishing startups to ensure sustainability and longevity in their operations. 

21. Investment funding in China dropped by 50% in 2020. 

(TNW, CNBC)

Global funding declined by 20% on a worldwide scale in 2020. Due to falling valuations, China suffered the most significant investor pullout by 50%. According to a report, China-focused private equity firms’ assets under management declined for the first time in 5 years. 

In 2021, things are starting to pick up, but still much slower than they were pre-pandemic.

US Startup Statistics 

As a thriving startup ecosystem, the US has maintained its position as the top region for entrepreneurship and innovation. According to the Global Entrepreneurship Index 2018, it has a rate of 83.6%.  

Here are fascinating stats about startups in the United States.

22. In 2016, the average growth rate of startups in the US was 75.62%. 

(Statista)

The US is a conducive environment for startups due to the ample presence of venture capitalists and investors. Some successful startups such as SpaceX, Instagram, and Airbnb have grown in the US. Along with China, the US has the most valued startups worldwide. 

23. In 2020, there were 475 “active unicorns” worldwide.

(CB insights)

All the “active unicorns” worldwide were worth $1.394 trillion in 2020. The latest data shows that the average billion-dollar US startup only takes six years to achieve such status. That number is down from seven and a half years in 2015.

24. One-third of small businesses in the US start with less than $5,000.

(Kabbage)

Another 58% started with less than $25,000 in startup funds. However, 65% of survey respondents admitted not being fully confident they had enough money to start their business.

Best startups in the USA in 2022 – Top 10 to watch out for.

25. The median salary for self-employed individuals with incorporated businesses in the US was $50,347.

(Forbes, Fundera)

The income of small business owners varies significantly. Self-employed individuals in unincorporated firms have an income median of $23,060.

According to a survey of hundreds of business owners, 86.3% of small business owners make less than $100,000 yearly.

26. Venture capitalists invested $156 billion in 2020.

(Tech Crunch)

There was an increase in venture capital of 56 billion from 2019 to 2020. The amount translates to about $428 million daily. Given this, American startups made $291 billion in revenue. 

27. Less than 1% of startups get funding from investors. 

(Medium)

The process of funding requires serious decision-making and planning to achieve your goals. The funding process includes idea stage, development, go to market, expansion, and going public. 

On average, the fundraising rounds take every 12 to 18 months, depending on how people manage their funding. Here are the several funding rounds for your startup: 

28. EdTech was the best industry for startups in 2021. 

(Geo Motiv)

Due to the pandemic, education has shifted from in-person to online sessions. With this,  the education technology sector was 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 expenditures worth $227 billion in 2020. Experts predict that will rise to $404 billion by 2025.

🚨 India’s Edtech soonicorns are losing connect with their valuations as growth sputters. Startups such as Doubtnut, Leap Scholar, Classplus, and Teachmint raised funds at unprecedented revenue multiples ranging from 100 to almost 5,000 as of FY22

— Chandra R. Srikanth (@chandrarsrikant) May 23, 2023

Startup Statistics for Europe

The European region houses 41 percent of the world’s top emerging ecosystems for startups. These include London, Berlin, Amsterdam, Paris, and Estonia. 

Know more about the startup statistics and trends in Europe. 

29. The total number of investments in European startups was 2,301 in the first half of 2019.

(Statista)

Since 2016, the number of investments in European startups has doubled until the first half of 2019. From 1214, investments reached 2301. The figures grew in number because of the active presence of investors from the seed level to the late stage. 

London, Paris, Berlin, and Stockholm are among the regions where most startups have flourished.  

30. More than 90% of European startups rate their business situation as good or satisfying.

(European Startup Monitor)

Business confidence was at an all-time low during the 2007-2008 global financial crisis, and forecasts were dire. The relatively slow but steady Eurozone economic growth rates contribute to positive small business trends.

31. 64% of European startup founders stated they would choose Europe over the US if they had to start over again.

(Startup Heatmap Europe)

The percentage of startups 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.

32. 60% of European startup founders stated they had traveled to the US at least once for their current startup.

(Startup Heatmap Europe)

European business owners desire to expand internationally and create more startup jobs worldwide. The widely held belief that the American entrepreneurial spirit is second to none also contributes to this growing trend.

Among the reasons why European startup founders return to Europe from the US include:

• To found a startup (11.90%)
• To study (14.29%)
• For family (22.22%)
• I grew up in Europe (28.57%)
• To work (23.02%)

33. Medical supplies had the biggest growth in 2020 in the UK.

(Small Business, Mordor Intelligence)

Due to the COVID-19 pandemic, the demand for medical supplies has increased exponentially in 2020. The UK hospital market is segmented into: patient examination devices, operating room equipment, mobility aids and transportation equipment, sterilization and disinfectant equipment, disposable hospital supplies, syringes and needles, and other types. 

The eCommerce industry also 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, up by 176%. 

Statistics on Startup Demographic 

The startup market also varies on gender, nationality, and background. Significant changes such as the increase of women startups change the entrepreneurial landscape meaningfully. 

Here are the latest changes and trends in the startup industry based on demographics. 

34. Women own 36% of small businesses.

(Legal Jobs)

Five decades ago, the idea of women starting businesses would have been implausible. However, things are changing as more women are determined to pursue their passions. Today, women own 36% of small businesses worldwide. 

In the US, women own 12.3 million businesses. Also, in the United Arab Emirates, women run 12.6% of businesses. Of these companies, 29% are international, more than male-owned companies. 

35. In 2020, 15.5% of entrepreneurs in Europe were women.

(Startups and Places)

The European business atmosphere is not as inclusive as the US regarding gender. In a survey of 20,000 European businesses, researchers found that only 15.5% belonged to women. Women also received 38% less funding under the same circumstances as their male peers.

The opportunity gap between men and women in Europe is due to structural imbalance, fewer funding opportunities, and the availability of startup support programs for women. 

36. In 2018, 9 of the 21 co-founded startup companies in the US had an all-female co-founding team.

(Medium, Crunchbase)

These co-founded startup companies have more than $20 million in annual revenue.

Although there was a significant decrease of 27% in funding for female-founded startups in 2020, especially during the height of the pandemic, that period also pushed women to invest in startups that provide solutions to women’s issues. 

Meanwhile, funding to companies with both men and women founders is relatively steadier at above $20 million yearly.  

Startup Trends

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.

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

The startup culture has infiltrated business ecosystems and provided limitless opportunities to risk-takers and niche finders. Here are some mind-bending facts about the startup scene worldwide. 

37. Successful startups are thrice more likely to have a 60-year-old founder than a 30-year-old.

(Medium)

Older startup founders are 1.7 times more likely to find a startup that ends up in the top 0.1% of all companies, which proves that experience matters. Also, ideas and execution are crucial factors in determining the longevity and success of startups. 

38. Entrepreneurs in Ecuador comprised 30% of the adult population, making it the most entrepreneurial country in the world.  

(GEM)

Compared to the global average of 12.81%, Ecuador has a total early-stage entrepreneurial activity of 36.20. 

The high willingness of entrepreneurs in Ecuador to start a business venture is due to government efforts to improve the country’s entrepreneurial capacity, which has caused an influx of co-working spaces, incubators, accelerators and angel investors. 

39. Stanford was the university with the highest number of startup founders in 2020.

(Statista)

In 2020, Stanford produced 465 startup founders. MIT was second with 367, while Harvard University had 293 graduates who established businesses.

Stanford leads the ranking because of its strong networks of school alums who were part of the Stanford Business School, its strong mentorship program, and the presence of a startup garage where many graduates volunteer. 

Wrap Up

The massive changes brought about by technological advancements, artificial intelligence, and innovations allowed startups to flourish in the ever-expanding digital economy. 

Despite the low success rates of startups, the market, especially for technology and healthcare, remains steady. 

Startups also contribute to the positive growth of global and local economies by increasing the demand for professional services and technology and providing jobs to the locals.

FAQs

By Harsha Kiran

Harsha Kiran is the founder and innovator of Techjury.net. He started it as a personal passion project in 2019 to share expertise in internet marketing and experiences with gadgets and it soon turned into a full-scale tech blog with specialization in security, privacy, web dev, and cloud computing.