startup statistics 2023

112 Startup Statistics to Know in 2023

Published On: March 26, 2023
By: Warren Jenkins

Entrepreneurs, investors, and innovation enthusiasts fasten your seatbelts and get ready for a thrilling ride through the world of startup statistics! In this comprehensive article, we’re unveiling an astonishing collection of 160 startup statistics that will not only fuel your curiosity but also give you the insider’s scoop on the ever-changing entrepreneurial landscape.

The journey of a startup is nothing short of a rollercoaster ride, with all its twists and turns, exhilarating highs, and nerve-wracking lows. As an entrepreneur, you’re always on the lookout for that one golden nugget of information that could propel your business to new heights or save it from the brink of collapse. This is precisely why we’ve meticulously gathered, analyzed, and presented a treasure trove of startup statistics to help you make informed decisions, identify emerging trends, and spot untapped opportunities.

As you dive into the world of startup statistics, you’ll uncover fascinating insights and trends from various industries and markets, spanning across different stages of a startup’s life cycle. Whether you’re a seasoned investor or a budding entrepreneur, there’s something for everyone in this exhaustive compilation of startup statistics.

In the quest to bring you the most relevant and up-to-date information, we’ve delved into a plethora of sources, ranging from renowned research papers and industry reports to expert opinions and case studies. Our collection of startup statistics offers a panoramic view of the current startup ecosystem, unveiling critical success factors, common pitfalls, and everything in between.

For the data-driven entrepreneur, startup statistics are the bread and butter of strategic planning and decision-making. They provide a deeper understanding of the competitive landscape, allowing you to identify potential threats and opportunities, and stay one step ahead of the game. So, if you’re looking for a healthy serving of startup statistics to whet your appetite, you’ve come to the right place.

We’ve made it our mission to present you with a diverse array of startup statistics, which cater to all your entrepreneurial curiosities. From eye-opening facts about the most successful startups to sobering truths about the high failure rates, these startup statistics offer a balanced perspective on the world of entrepreneurship. By the end of this article, you’ll have a newfound appreciation for the sheer resilience, tenacity, and ingenuity that characterize the startup journey.

As you explore the depths of these startup statistics, you’ll be equipped with the knowledge and foresight to make better business decisions and mitigate potential risks. With the right blend of data-driven insights and a dash of entrepreneurial spirit, you can unlock the full potential of your startup and embark on a path to success.

So, are you ready to dive into this incredible treasure chest of startup statistics? Prepare to be amazed, inspired, and enlightened as we take you on a captivating journey through the exhilarating world of startups. Whether you’re looking for that one statistic to inspire your next big idea or seeking validation for your current venture, this article promises to be a goldmine of information.

Read More: Complete Business Process Guide by Jetdocs (for Startups & Beyond)

Without further ado, let’s embark on this fascinating expedition through the world of startup statistics – a world filled with innovation, disruption, triumphs, and heartbreaks, where only the most resilient survive and thrive. Get ready to be blown away by the 160 startup statistics that will redefine the way you look at entrepreneurship!

Startup Success & Failure Statistics 2023

  1. Around the world, 90% of startups fail.
  2. Failory’s report in 2021 revealed that 34% of people interviewed cited the lack of product-market fit as a reason for startup failure, while 22% mentioned marketing problems, 18% had team problems, 16% faced financial problems, and 6% encountered tech problems.
  3. The primary reason for startup failures is the lack of product demand.
  4. Startups take an average of 2-3 years to become profitable.
  5. Globally, 61% of startups offer B2B solutions, while only 39% offer B2C solutions.
  6. North America is home to the largest number of unicorn startups, followed by Asia and Europe.
  7. As of 2023, the United States has the highest number of startups of any country.
  8. Bytedance, with a valuation of $275 billion as of January 2023, is the most highly valued startup in the world.
  9. India has the third-largest startup ecosystem in the world, and Indian startup Byju’s is among the top 15 unicorns globally.
  10. As of 2023, startups in the blockchain, e-commerce, artificial intelligence, and fintech sectors are experiencing rapid growth.
  11. 30% of startups fail within the first two years, while 50% fail within five years.
  12. 70% of startups close within a decade.
  13. 40% of startups fail due to a lack of market need.
  14. 20% of startups fail after the first year.
  15. The biggest challenge faced by startups today is finding a real problem to solve.
  16. Only 40% of startups are profitable, and one-third continue to lose money.
  17. The most common reason for startup failure is a lack of product demand, accounting for 34% of startup failures.
  18. Nine out of ten startups fail.

Startup Fundraising Statistics

  1. 60% of startups are started from home, equivalent to around 32.5 million small businesses in the US.
  2. Fewer than 10% of startups that raise a seed round are successful in raising a Series A investment.
  3. The average funding for a Series C round is $50 million US dollars.
  4. According to Forbes, once a startup reaches a Series B or C round, it will likely operate for 1.5 to 2 years before seeking new capital.
  5. Finance and insurance startups account for the largest market valuation among unicorn startups, at $526 billion.
  6. In a survey, 43% of startup founders said that raising capital was their biggest challenge. Other top challenges cited were developing a viable business model (23%), attracting and retaining customers (13%), and hiring and managing staff (10%). (Startup Genome, 2020)
  7. Another report from Silicon Valley Bank in 2020 showed that 42% of startups in the US, UK, and Canada had venture capital as their primary source of funding, while 16% relied on friends and family, and 5% were funded by corporate venture investors and angel groups.
  8. Q4 2022 saw 4,272 completed seed and angel deals.
  9. Startups generally raise three rounds of funding before receiving Series A funding.
  10. The average amount of funding for a Series A round is $15.7 million, followed by $30.7 million for the Series B round and $55 million for the Series C round.
  11. Venture capital firms receive over 1,000 proposals annually and tend to be interested in startups that require an investment of at least $25,000.
  12. One out of every three small businesses starts with less than $5,000.
  13. According to a study by The Economic Times, global venture funding is expected to decline by 19% in the first quarter of 2023.
  14. Early-stage funding for 8,000 startups in 2021 amounted to $210 billion.
  15. As of 2023, the Fintech sector has received the most investment, with $10.1 billion.
  16. Between 2016 and 2020, funding for AI startups increased by 327%.
  17. Only about 1% of Kickstarter projects raise more than $1 million.
  18. Y Combinator has had the most startup exits of any US-based accelerator.
  19. US-based startups’ average time between initial venture capital and initial public offering exit is 5.3 years.
  20. 75% of venture capital-backed startup companies never repay their investors.
  21. In 30-40% of scalable startups, venture capitalists lose all of their money.
  22. During the initial phase, the majority of startups (58%) have less than $25,000 in funding, and most have only $10,000.
  23. 75% of startups rely on personal savings during the initial phase.
  24. The number of completed early-stage deals partially recovered in Q4 2022, reaching 2,364.
  25. Over the previous decade, only 2014 and 2018 had more than $34 billion in venture capital activity.
  26. Startup funding increased by $8 billion in January 2021, representing a $16 billion increase from March 2020.

Startup Statistics on Social Impact

  1. Approximately 15.4% of the US population is involved in startups.
  2. Indian startups have created 600,000 jobs in the country to date.
  3. According to Statista, the US created 3,114,111 new jobs in 2020 alone through startups.
  4. Currently, there are around 31.7 million small businesses in the US, which account for 99.9% of all US businesses.
  5. The US has the highest number of startups globally, with around 72,560 startups.
  6. The global e-commerce unicorn market size is $114 billion.
  7. The majority of US entrepreneurs come from Stanford University.

Startup Founder Statistics

  1. Despite limited cash flow, 82% of successful entrepreneurs believe they have the necessary qualifications and experience to run a startup.
  2. Founders of successful businesses have a 30% chance of repeating their success earlier

Startup Failure Statistics

  1. Identifying product demand could save the majority (34%) of startups from failure.
  2. Entrepreneurs who have failed before have a 20% chance of succeeding, while first-time entrepreneurs have an 18% chance.
  3. Quibi Holdings LLC, with $1.75 billion in funding, was the most expensive failed startup.
  4. 43% of US entrepreneurs are concerned about startup failure.
  5. The five-year survival rate for startups in the United States is 51.3%.
  6. 80% of e-commerce startups fail
  7. Only 20% of the startups succeed and they make good fortune
  8. Fintech startups have a failure rate of 75%.
  9. 80% of startups in the health tech industry fail.
  10. In the ed-tech industry, 60% of startups fail.
  11. The success rate of startups in the gaming industry is 50%.
  12. Startup success and failure rates vary by country.
  13. Startup teams with high levels of experience but medium to low levels of enthusiasm and collaborative vision performed worse overall.
  14. According to another study by Harvard Business Review, 60% of startups fail due to team problems.
  15. National Business Capital & Services in 2020 reported that about 90% of startups fail. Moreover, small businesses in the information industry had the highest failure rate at 63%, followed by construction (53%), manufacturing (51%), and services (45%).

Startup Diversity & Inclusion Statistics

  1. In 2020, Black and Latinx women founders raised $3.1 billion in venture funding, as per Digital Undivided’s report.
  2. Black and Latinx women founders have raised more than $1 million in median seed round funding, but their amounts fall short of the national average of $2.5 million. The median seed round funding for Black women was $125,000, while for Latinx women, it was $200,000, as per Digital Undivided’s data in 2020.
  3. Female founders worldwide have raised venture capital worth $5 billion.
  4. In the US, 28% of startups have at least one female founder, while only 14% have female CEOs.
  5. China has a 1.5% gender founder gap, Japan has a 4.5% gender founder gap, and Colombia has a 2% gender founder gap.
  6. Only 15% of unicorn startups in India have female founders, but among the country’s 15 unicorn startups in 2022, 5 have a female co-founder.
  7. In 2021, the rate of new entrepreneurs among female US residents was 0.28%.
  8. Google has a $5 million fund for black founders and promotes it through the hashtag #FundBlackFounders.
  9. The average age of a startup founder is 45, but 40% of startups are run by individuals below the age of 40.

Startup Jobs Statistics

  1. The majority of startup employees work 50-60 hours per week, with many entrepreneurs working 60-100 hours.
  2. Startup sizes are shrinking, with the average number of employees dropping by 20% from five employees in 1994 to four employees in 2019.
  3. In India, around 40-50% of people who leave startups are recruited by IT firms, consultancy and product firms, and global captive centers.
  4. During the startup funding cold season of 2022 in India, over 11,000 employees were laid off.
  5. According to the layoff tracker, since April 2022, at least 20,500 employees have lost their jobs at tech startups worldwide, with the United States leading the pack.
  6. According to the U.S. Bureau of Labor Statistics (2020), startups created 3.11 million jobs in the United States as of March 2020.

Startup Survival Statistics

  1. Healthcare and social services startups have a higher chance of surviving after five years in operation, with a rate of 60%, while the construction, transportation, and warehousing industry has a lower rate of 35% to 40%, according to National Business Capital & Services in 2020.
  2. LeSports, a sports streaming company, is the most expensive startup failure worldwide, with a total disclosed funding of $1.7 billion, based on CB Insights’ report in 2021. Other costly startup failures are Solyndra ($1.2 billion), Arriveo ($1 billion), and Jawbone ($929 million).
  3. A study in 2021 showed that the average two-year fail rate of all startups is 40%, while the failure rate of Black and Latinx female-led startups is 27%.
  4. The most significant cost for startups is equipment, which averages between $10,000 and $125,000.
  5. It takes an average of six months to hire a suitable person for a startup.
  6. Startups whose core team consists of 25 or younger individuals outperform all other age groups.
  7. In 2009, the number of startups with at least one female on the founding team was 10%, which has now increased to 20%.
  8. Stanford University has the most entrepreneurs among its alumni, with 1,127 company founders, and Alphabet is also founded by a couple of Stanford alumni, Larry Page and Sergey Brin.
  9. ByteDance is currently the highest-valued unicorn startup.

Niche-Based Startup Statistics

  1. North American unicorns have a total valuation of $929 billion, and finance and insurance unicorns globally are worth $526 billion.
  2. North American unicorns receive 35.4% of equity funding, while transportation and logistics unicorns receive a 25.58% share.
  3. Alibaba is the largest unicorn exit globally.
  4. There was an 1167% increase in Whatsapp’s valuation after Meta acquired it in 2014 for $16 billion.
  5. As of 2023, there are over 1,100 unicorns worldwide, with 103 in India, 607 in the USA, and 130 in Europe.
  6. The global food tech market was worth $220.32 billion in 2019 and is expected to grow by 6% to reach a market size of $342 billion by 2027.
  7. There are over 10,500 food tech startups worldwide, with 3,705 of them in the USA alone.
  8. Venture capitalists invested more than $39.4 billion in the food technology sector in 2021, making 1,360 deals.
  9. The number of vegans in the United States increased from approximately 300,000 in 2004 to 9.7 million in 2019, leading to the growth of food tech startups that mimic meat.
  10. DoorDash and Impossible Foods are among the largest food tech companies in the USA.

Market Statistics for Startups

  1. To attract more customers, 80% of restaurants are using technology, and over 15% of restaurant orders are placed through smartphones.
  2. After the epidemic, 25% of restaurant operators allowed clients to place orders through apps.
  3. The Indian food tech sector is growing at a compound annual growth rate (CAGR) of 39%.
  4. Fintech deals decreased by approximately 30% in the second quarter of 2020 compared to the first quarter, resulting in the lowest deal count for fintech startups in Asia and Europe since the fourth quarter of 2016, according to CB Insights in 2020.
  5. Statista (2020) revealed that as of January 2020, the Asia-Pacific region had the highest market valuation for unicorns worldwide, with a total valuation of $971.37 billion, followed by North America with $857.57 billion and Europe with $125.86 billion.
  6. According to analysts, the US is expected to experience economic growth of 5% or more, resulting in a shift of investor focus to old-economy sectors such as energy, banking, hotels, and airlines, as per The New York Times in 2021.

Startup Founders Statistics

  1. Franchise Insights’ survey in 2021 found that 31.2% of entrepreneurs plan to start a business in February 2021, while 28.9% plan to do so within two to three months. Additionally, 15.6% of respondents plan to launch a business within four to six months, and 10.4% within seven to 12 months. The survey also revealed that 32.9% of respondents strongly agree that now is a good time to start a business, while 29.4% agree.
  2. Entrepreneurs seem to be more inclined to start a business now than three months ago, as per Franchise Insights’ survey in 2021. Specifically, 63.9% of entrepreneurs reported being more or much more likely to start a business now, while 23.7% reported no change in their outlook. Only 7.7% said they were much less likely to start a business now than three months ago.
  3. Franchise Insights’ survey in 2021 also revealed that the pandemic has boosted the interest of 37.3% of respondents in controlling their destiny through business ownership. Meanwhile, 28.8% favor pandemic-resistant businesses.
  4. Startup founders are optimistic about the pace of recruitment increasing this year, with 72% predicting a rise. Sectors such as logistics, digital media, ecommerce, and deep tech are likely to benefit the most from the predicted spike in hiring, according to The Economic Times in 2021.

Conclusion

In conclusion, the world of startups is a dynamic, ever-evolving landscape, where breakthroughs and setbacks go hand in hand. The 160 startup statistics presented in this article have shed light on the many facets of entrepreneurship, providing invaluable insights and trends for both budding and seasoned entrepreneurs. By dissecting these startup statistics, we have not only gained a deeper understanding of the entrepreneurial ecosystem but have also equipped ourselves with the knowledge to make informed decisions, spot emerging trends, and identify untapped opportunities.

As we’ve seen, startup statistics can be both inspiring and humbling, highlighting the immense potential and the inherent risks that come with venturing into the world of entrepreneurship. These statistics have demonstrated the importance of resilience, adaptability, and a keen eye for spotting opportunities in an increasingly competitive landscape. It’s clear that a data-driven approach, combined with unwavering passion and determination, can significantly improve the odds of success in the startup world.

We hope that these startup statistics have been enlightening and have fueled your entrepreneurial spirit. Use these insights to guide your decisions, learn from the mistakes and triumphs of others, and always be prepared to adapt and innovate. As the world of startups continues to evolve, staying informed and leveraging these startup statistics can help you carve your path to success.

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Warren Jenkins

Warren Jenkins

Expert Author

Warren is a process manager here at Jetdocs where he helps businesses to identify business processes that require optimization. With a data-driven approach to analyzing processes and identifying areas for improvement, such as reducing waste, increasing efficiency, and improving quality, warren has the experience required to form efficient business processes. Warren covers the topic relating to creating, optimizing and streamlining business processes in Jetdocs blog. Connect with Warren on Linkedin