Today, we’re rounding up the best Startup Statistics for 2023 your Startup must know to create a powerful Growth strategy.
Let’s get started.
Key Startup Statistics 2023 – MY Choice
- 91% of all startups fail eventually.
- Roughly 100 million startups open each year.
- 28% of US startups are female-founded.
- Startups with two founders have greater chances of success.
- 32% of startups opt for acquisition as an exit strategy.
- 38% of startups had to change their exit strategies due to COVID-19
- 98.9% of all Canadian businesses are small to medium-sized firms.
- Fintech is the industry with the most startups.
- Only 20% of startups succeed in the first year of operation.
- Silicon Valley is valued at $2 trillion as a startup ecosystem.
- Startups aren’t profitable during their first year of operation.
General Startup Statistics 2023
- 0.32% of the US population starts a new business annually.
- 19% of startup leaders agree that competition is the greatest challenge when starting a business.
- The average startup has less than a 1% chance of becoming a unicorn.
- The average wage in the US for a startup employee is US$80,958 per year.
- The main reason why startups fail is the lack of financial resources.
- There are around 95,000 new businesses started in Canada per year.
- Countries with the Most Startups. The USA leads the way when it comes to the number of startups. It is home to around 75,640 startups.
Here is an overview of the Top 10 Countries with the Most Startups:
|Country||Number of Startups|
- Around 50% of Unicorn companies are located in the United States.
Startup Statistics by Country Ranking
- In US, 67% of startups have <$25 million in revenue , while 15% have >$25 million.
- The United States is the leading country by the number of startups (71,153).
- India comes second by way behind it at 13 125 while thirdly there’s Great Britain which houses 6 220 entrepreneurial endeavors.
- Bytedance from China is the highest-priced private start-up today and is worth $75 billion:
|ByteDance||$400 Billion||Internet TEchnology|
|Stripe||$95 Billion||Financial services|
|Canva||$40 Billion||Graphic designing|
|Epic Games||$31.5 Billion||Gaming|
- Around 260 companies are founded in Canada every day. Around 95,000 businesses open in Canada each year.
- California is home to over 1,131 startups.
The State of Startups Statistics
- The top 10 US startup cities:
- 99.8% of all Canadian businesses were small- to medium-sized in 2019.
- According to startup survival rate stats, 70.4% of Canadian micro-enterprises survive after five years on the market.
- According to statistics on startup failure, 87,998 businesses closed in Canada in 2020.
- British Columbia and Saskatchewan have the highest small to medium-sized business employment percentages.
- In 2018, Poland had the most female startup founders in Europe.
- In 2020, there were 3,114,111 new jobs created through startup businesses in the US alone.
- In Europe, fewer than 1% of tech startup founders identified as Black/African/Caribbean in 2019.
- India’s total number of small and medium-sized businesses was more than 63 million in 2020.
- Of 250,000 surveyed entrepreneurs in Canada, 51% were women
- The majority of Canadian startups wish to be acquired.
- there were around 3.5 million entrepreneurs in Canada.
Startup Success Rate Statistics
- 24% of startups made between $51 million and $100 million in revenue in 2019.
- 60% of U.S. startups expected business conditions for their company to improve in 2019, 1% less than in 2018.
- 61% of startups globally offer B2B solutions, whereas the other 39% offer B2C solutions.
- 71% of surveyed U.S. startups have successfully raised capital in 2018.
- 80% of successful start-ups founders say even with limited cash flow, they have the needed qualification and ample experience to manage an organization.
- 82% of American small business owners believe they have the right qualifications and backed up experience to run their new business even with cash flow problems.
- As agreed by 38% of startups, COVID-19 sales declines were the most prominent reason for their exit strategy changes.
- Close to 80% of startups in the US survive their first year.
- Founders who failed previously have a 20% chance of succeeding versus an 18% chance of success for the first time founders.
- Globally, product innovation scores have increased by 22% since 2017, while startup skill scores have risen by 11%.
Common Myths about Startups:
- If you already had a successful business in the past, your next venture faces a 30% small business success rate.
- In 2020, a total of 66 venture capital-backed startups managed to join the unicorn club.
- Merely four traits connect all successful businesses: having mentors, persistent leaders, a disruptive business, and knowing the market (and your target audience).
- More than 80% of U.S. startups said that they planned to add employees in 2019.
- On average 15% of micro-enterprises are traders, while the share is 60% for small enterprises.
- Scores on the Global Entrepreneurship Index have improved by 3% on average since last year.
- Startups that pivot 1-2 times have 3.6x better user growth in comparison to startups that pivot zero or more than twice.
- The older you are, the more likely it is for your startup to succeed. Because The success rate of startups depends on their founders’ experience.
- The total value of all US unicorns is $929 billion
- There are more than 1000 unicorns in the world. A unicorn is a private startup company that reaches a value of $1 billion
- Uber, a household name, also began as a startup in 2009, now has around 22,000 employees.
the characteristics of successful startup:
Startup Failure Rate Statistics
- 20% of startups get outcompeted, 15% of startups fail due to pricing/cost issues.
|Reason for failure||Share of Startups to fail due to it|
|Run out of cash||38%|
|Lack of product demand||35%|
|Flawed business model||19%|
|Not the right team||14%|
|Disharmony among team/investors||7%|
|pivot gone bad||6%|
Some famous examples of startup failures:
- 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
- 2020 Had The Most Startup Searches of Any Year.
- 50% of U.S. startups say they are concerned trade policy between the U.S.A. and China would hurt their business in 2019.
- 56% of companies that raise a follow-up round of funding after their seed are then able to raise a second follow-up round.
- 65% of entrepreneurs admit they were not fully confident they had enough money to start their business.
- 73% of businesses have overly optimistic sales estimates.
- 77% of businesses do not have appropriate product and/or service prices.
- 79% of businesses that fail start out with too little money.
- 82% of first-time European entrepreneurs fail.
- Access to talent (63%) was the critical issue affecting startups in 2019.
- Around 75% of venture-backed startups never return their initial investment
- As of 2017, 68.3% of failed Mexican startups could not find governmental programs.
- Failure rates are similar across all startup industries
- In 2019, 50% of U.S. startups said that their more realistic long-term goal is to be acquired, 7% less than in 2018.
- In 2021, Europe is positioned as a strong global tech player, with a record of $100 billion of capital invested and 98 new unicorns.
Startup Success and Failure rate by Countries:
|Country||Startup Failure Rate||Startup Sucess Rate|
The probability of startup failure is 90%
- 18% of Mexican entrepreneurs did not have any intention to launch a startup after experiencing failure.
- Only 40% of startups become profitable, only 9% of startups survive ten years.
- Only 6% of U.S. startups believe organic growth will be their company’s next source of funding.
- The Highest Startup Failure Rate Occurs in the Information Industry (63%).
- There Are Over 32 Decacorns in the World.
- Up to 40% of investors lose their entire investments due to startup failure.
Startups Financial Stats, Facts, and Figures
Startup Funding Statistics
- 52% of companies expected their next source of funding to be Venture capital.
The Startup industries with the most investments:
|Industry||Amount invested in 2021||Amount invested in 2022|
|Fintech||$28.9 Billion||$10.1 Billion|
|Transportation||$23.6 Billion||$6.0 Billion|
|Food||$22.3 Billion||$6.1 Billion|
|Health||$10.6 Billion||$3.6 Billion|
|Home Living||$10.4 Billion||$1.8 Billion|
|Marketing||$8.8 Billion||$1.8 Billion|
|Real Estate||$8.4 Billion||$3.7 Billion|
|Fashion||$7.0 Billion||$2.4 Billion|
|Education||$6.6 Billion||$3.0 Billion|
|Travel||$4.7 Billion||$983 Million|
- 30% of startups raised between $51 million and $100 million in capital funding.US startups alone raised an amount of $311 billion in 2022
- 75% of venture-backed successful startup firms never return cash to investors
- 77% of business owners state that most of their initial startup costs were covered with personal funds.
- approximately one in four start-ups became limited because they could not receive funding.
- accounting, online retail, and landscaping start-ups spent under $5,000 to set up.
- business startup statistics show that only 34% of respondents used bank loans, whereas 16% stated that most of the money came from friends and family.
- venture capitalists invested three times more funds in digital health startups in 2020.
- In 2018, male entrepreneurs received $109.36 billion in VC while female counterparts only received about $2.86 billion in VC.
- Less than 1% of startups get venture capital investment.
- Medical offices, restaurants, and manufacturing companies are the most costly to set up, needing an average capital of about $100,000
- Less than half (48%) of startups manage to raise a second round of funding.
- Most of the prominent start-ups today have taken a billion-dollar loan on average as funding at some point.
- Only 6% of startups believe that organic growth will be their next funding source.
- Startup loans mostly range between $9,000 and $20,000.
- The higher the capital funding, the more are startups concerned about cyber risk and financial statement fraud.
- The startup burn rate greatly differs based on funding stages.
Startup Costs Statistics
- 70% of spend goes towards sales.
- It’s a general rule-of thumb that most startups have $10,000 to invest in their business.
- Money matters for startups. 58% of startups have less than $25,000 at their disposal during the startup phase. 33% of the companies surveyed said they had less than $10,000 in capital to get started and execute on their business plan. So the most popular financing options for startups in 2021 was cash.
- 36% of all startups do not currently have a website. 35% of these small businesses believe they do not have enough capital to build a website.
- Most start-ups would need about $10,000 to $125,000 worth of equipment to set up.
- Most venture capital firms are only interested in making investments of $250,000 or more.
- The average entrepreneur earns only about $59,000
- The cost of health insurance is one of the dominant challenges start-ups faces
- The most expensive startup costs are payroll; five employees will cost just over $214,300 per year.
Startup Founder Demographics and Diversity Statistics
Reason for starting
- When asked about their long-term goals, 50% of company leaders said that the most realistic scenarios are acquisition.
- Business owners consider communication the most important skill any founder needs.
- 69% of all successful startups start from home, 59% choose to operate even when they have enough cash.
Startup Gender Statistics
- As of 2019, there were more male entrepreneurs than females, with a ratio of 10:7
- 41% are Baby Boomers, 46% belong to Generation X, 13% are Millennials, and just 1% belong to the youngest among them — Gen Z.
- 68% of small business owners are men.
- In the United States, there are 14.8 million businesses owned by men and 9.9 million businesses by women entrepreneurs.
- Start-ups owned by female entrepreneurs were 63% more successful than those founded and developed by male entrepreneurs.
- The average of female-founded startups is around 20%.
Startup Education Statistics
- 86% of successful business owners admit that education is crucial for the startup’s success.
- 95% of entrepreneurs that create startups have a bachelor’s degree, and 47% have more advanced degrees
- Entrepreneurs who attended an ivy league college built start-ups that succeeded 220% more than their counterparts’ start-ups.
- Entrepreneurs who had worked at big tech organizations before setting up their businesses performed 160% better.
- Most successful startup owners are Stanford University graduates.
Startup Age Statistics
- 3.0% of startup founders were 40 years old, compared to 2.5% of 30-year-olds and only 1.7% of 25-year-olds. Also, a 40-year-old founder is 1.3x more likely to be in the top 0.1% of startups than a 25-year-old.
- A startup founder who is 40 years old is 2.1x more likely to start a successful venture than a 25-year-old. So, Older entrepreneurs are more likely to succeed in their startups
- The average age of a successful startup founder Is 45 years old.
Small Business Statistics for Startup Teams
- It takes an average of 6 months for start-ups to get employees.
- Partnership start-ups beat sole proprietor start-ups in performance by 163%.
Here is a list of Indian Companies that have recruited the most number of people in Q4 FY 2022:
|Company||No. Of People Recruited|
Employees and Outsourcing Startup Jobs Statistics
- 53% of startups have an average contract length of one year
- 57% of startups billing frequency is annual
The mindset of employers and employees:
Startups Industry Specific Statistics
- 8.7% of Startups are in Healthcare sector
- 58% of startups use AWS to host services.
- The biotech industry is already valued at $295B. And that number may grow in 2021 as DNA analysis becomes more widestream and advanced.
- eCommerce is another primary market in which 10.9% of all startups operate.
- In 2021, retail e-commerce sales amounted to approximately US$ 4.9 trillion, with rapid growth expected in the future.
Statistics for FinTech Startups
- 7.1% of the startups in the world operate in the Fintech industry.
- 88% of established financial giants believe that a part of their business will be overlooked by the standalone fintech companies in the next five years.
- There are over 12,000 fintech startups and 5,779 in the U.S.
Construction Startup Statistics
- Construction startups have a 36.4% likelihood of lasting more than 5 years.
- Construction startups have a failure rate of 53%.
- Construction startups raised more than $5 billion in 2021.
- The estimated funding for construction startups is around $9 billion.
- There are over 6.2K construction startups in the world.
Technology Startup Statistics
- 60% of entrepreneurs agree that AI is currently the most promising innovation technology.
- Tech companies pay $102,000 more than the average pay of workers in the United States, which is $48,000.
- The average funding that most tech companies require is between $100 million and $220 million to reach unicorn status as a startup
- The fastest-growing tech startups are in advanced manufacturing and robotics, which is growing at a rate of 189.4%.
- The United States tech market was worth a whopping $1.6 trillion as of 2019.
- The value of the Global tech industry stands at $5.3 trillion
- The tech industry recorded a 63% start-up failure rate.
- 90% of successful tech startups are currently in the product and in the market
- Agtech and new food is the second-fastest-growing sector for startups, with a growth rate of 171.4%.
- Blockchain is the third-fastest-growing tech startup category, with a 162.6% growth rate.
- AI, big data, and analytics are the fourth-fastest-growing tech startups, at 77.5% growth rate
- From 2007 to 2016, electronics manufacturing went up by 78%.
- Green technology and sustainability market size will be $36.6 billion by 2025, at a CAGR of 26.6%
- In the United States, an average of 20 tech companies are created every year.
- It takes on average 10 years for a European tech startup to reach the level of a unicorn company
- Raising $105 billion for startup funds, Silicon Valley is the tech hotspot, making San Francisco the tech capital of the world
- startups operating with big data have raised over $11.7B in equity funding across 370+ global startup deals from more than 700 VCs.
Real Estate Startup Statistics
- Real Estate startups generated a revenue of more than $32 billion.
- Real Estate startups have a less probability of failure as compared to other industries, around 42%
- The five-year survival rate for real estate startups is 39.6%
- The most popular real estate startup is Airbnb. In 2020, the company secured an investment of $350 million from Silver Lake alone.
The Future of Startup Statistics
- Startup organic growth rate is 40.3%.
- Startups created over three million jobs in the world in 2020.
- As of 2018, the United States had 30.2 million start-ups.
- In 2010, there was only an average of $5 million Series A, but as of 2017, it had hit $12 million.
- It takes about 22 months to move from Seed to Series A, 24 months from Series A to Series B, and 27 months to move from Series B to Series C.
- Startups created over three million jobs in the world in 2020
What are the most significant investments?
What are the most Valuable Unicorns?
How many startups fail in 2023?
The statistics are alarming. Out of 10 startups, 9 don’t make it and 20% fall apart after a year; 30 percent close within two years (50%) while only 50 per cent survive longer than five (10%). The primary reason being lack in ability to offer products/services for target markets which leads many companies not generating enough interest from them.
What is the History of the Startups?
In 2023, there were about 1.35 million technology startups in the world
United States 63.3%. China 21.7%. India 4.7%
10% of startups are successful each year and know what it takes to survive the odds of failing.
1: Outsourcing business.
2: Internet of things (IoT) industry.
3: Rise of co-working space.
4: 3D printing.
5: Consumer goods and services business.
6: Business in real estate.
7: Healthcare industry.
Artificial Intelligence (AI) industry will boom in 2025 .By the end of 2025, the AI software category will have dominated the market, growing at a CAGR of 18.1% from $2.8 billion in 2020.
Market Research : Knowing the customer well is a key success factor for startups or any other business that wants to prosper commercially. Without understanding who you are selling to, you can’t be sure that you will be making the right calls when developing a new product or service to deliver value to your customers.
1. Healthcare and Insurance Sector.
2. Renewable Energy Sector.
3. IT Sector.
4. Real Estate Sector.
5. Fast Moving Consumer-Goods Sector (FMCG).
6. Automobile Sector.
7. Cloud Computing.
9. Data Analytics.
10. Artificial Intelligence.
11. Green Energy.
13. Internet of Things.
Reasons for failure include :
1: money running out.
2: being in the wrong market.
3: a lack of research.
4: bad partnerships.
5: ineffective marketing.
6: not being an expert in the industry.
New Zealand is the easiest country in which to start a business.
The average startup lasts between two and five years. On average, 90% of startups survive one year. 69% of small businesses survive two years. However, only 50% of startups will survive five years.
Unicorn startups are those that reach a valuation of $1 billion without being listed on the stock market and are the dream of any tech startup.
1. Stay true to the core purpose.
2. Form a kickass team.
3. Expand your social media presence.
4. Collaborate with established brands.
5. Make every customer feel special.
6. Keep an eye on your competitors.
7. Make the most of tools.
Yes, TikTok alone was said to be worth about $50 billion. That would make it the most valuable startup in the world.
Yes, Unicorn Startups fail.
Yes. You can have a successful startup as a solo founder.
I t will continue growing. Future entrepreneurship will be defined by new solutions that work anywhere.