98+ Startup Statistics of 2022 (The Extensive List)

Startup Statistics - DemandSage

The Startup scene is alive and kicking worldwide. Many unicorns are flying higher than ever. To keep up with current trends, we’ve gathered important startup statistics to help you better understand the environment and how you should go about approaching the startup scene. 

If you are an entrepreneur who wishes to initiate a startup or an investor who wishes to put your money into these budding companies, this set of statistics will help both make an informed decision.

As this is a very sensitive topic, we have included only the most up-to-date figures. Dive into the Statistics without having a second thought. 

Let’s start, shall we?

Important Startup Statistics

Before diving into the categorial startup statistics, here is an overview of the most important figures associated with startups worldwide.

Startup Statistics - Startup Ideas
  1. North America has the highest number of unicorn startups, followed by Aisa and Europe.
  2. The United States of America is the country with the most startups.
  3. 61% of Startups offer B2B solutions while only 39% of Startups offer B2C solutions globally.
  4. Bytedance is the highest valued startup in the world with a valuation of $140 billion.
  5. India has the third-largest startup ecosystem globally. India’s startup Byju’s is among the Top 15 unicorns in the world.
  6. Startups around blockchain, E-commerce, Artificial intelligence, and Fintech are growing rapidly as of 2022.
  7.  It takes 2-3 years on average for startups to make a profit.
  8. 40% of Startups fail, mostly due to a lack of market need.
  9. 15.4% of the US population is involved in startups.
  10. The first quarter of 2021 witnessed the most number of global seed and angel venture capital deals after Q4 2016.
  11. Finding a real problem is the biggest challenge faced by startups nowadays.
  12. Fierce competition is one of the most common challenges faced by startups today.

General Startup Statistics

  1. 60% of startups begin at home. That is equivalent to around 32.5 million small businesses in the U.S.A.
  2. Fewer than 10% of startups that raise a seed round successfully raise a Series A investment.
  3. The Series C round’s average funding is $50 million US dollars.
  4. Indian Startups gave given rise to 600,000 jobs in the country to date.
  5. As per Statista, the USA created 3,114,111 new jobs in 2020 alone via startups.
Startup Statistics - Number Of Jobs Created Through Startups
Source: Statista
  1. There are currently around 31.7 million small businesses in America.
  2. Small businesses account for 99.9% of US businesses.
  3. As per Forbes’ study, Once a startup reaches a Series B or Series C round, it will probably work for 1.5 to 2 years before bringing in new capital.
  4. Countries with the Most Startups. The USA leads the way when it comes to the number of startups. It is home to around 72,560 startups.

Here is an overview of the Top 10 Countries with the Most Startups:

CountryNumber of Startups
The USA72,560
India13,905
The UK6,396
Canada3,446
Australia2,399
Indonesia2,391
Germany2,320
France1,579
Spain1,411
Brazil1,165
  1. The global e-commerce unicorn market size is $114 billion.
  2. Unicorn startups in the finance and insurance sector had the biggest market valuation accounting for $526 billion.
  3. Only 40% of startups are profitable, and 1/3rd of Startups continue to lose money.
  4. The majority of US entrepreneurs come from Stanford Univerity.

Sources: Incfile, Fundz, Busines Standard, Statista, US Chamber, The Economic Times, Forbes, Startup ranking, Demandsage, Statista, SmallBizTrends, Statista.

Startups Failure and Succes Rate Statistics

  1. 9 out of 10 startups fail.
  2. 20% of startups fall apart post the 1-year mark.
  3. 30% of startups fall apart within the 2-year mark, while 50% do so within 5 years.
  4. 70% of startups close within a decade.
  5. The most common reason for startup failure is the lack of market need. 34% of startups fail due to it.

Here is an overview of the most common reasons for startups to fail:

Reason for failureShare of Startups to fail due to it
Lack of product demand34%
Marketing Problems22%
Team Problems18%
Financial Problems16%
Technical Problems6%
Legal Problems2%
Operational Problems2%
  1. Even with limited cash flow, 82 percent of successful entrepreneurs admit 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.
  3. Identifying the product demand will help save the majority (34%) startups from failing.
  4. Entrepreneurs who have failed earlier have a 20% likelihood of succeeding, while first-time entrepreneurs have an 18% chance.
  5. With $1.75 billion in funding, Quibi Holdings LLC was the most expensive failed startup.
  6. 43% of US entrepreneurs are concerned about startup failure.
  7. The five-year survival rate for startups in the United States is 51.3 percent.
  8. 80% of e-commerce startups fail. The 20% that succeed make a very good fortune.
  9. 75% of Fintech Startups fail.
  10. 80% of health tech startups fail.
  11. 60% of Ed-tech startups fail.
  12. Startups in Gaming Industry have a 50% success rate.
  13. Startup Success and Failure rate by Countries.
CountryStartup Failure RateStartup Sucess Rate
The USA80%20%
Canada80%20%
The UK70%30%
France80%20%
Germany75%25%
Switzerland65%35%
Estonia75%25%
South Africa86%14%
Hong Kong70%30%
Singapore70%30%
Australia75%25%

Sources: Failory, SmallBizTrends, CB Insights, Statista, GEM, US Census Bureau, SPD load.

Startup Funding and Cost Statistics

  1. In the initial phase, 58% of startups have less than $25k at their disposal. Most conveniently 10,00.
  2. 75% of Startups use personal savings to support the startup in the initial phase.
  3. From Q1 2021, The number of completed early-stage deals has partially recovered and reached 2,364 in Q1 2022.
  4. Only 2014 and 2018 saw more than $34 billion in venture capital activity in the previous decade.
  5. 4,272 seed and angel deals were completed in Q1 2022.
  6. In January 2021, startup funding increased by $8 billion. That was a $16 billion increase over March 2020.
  7. Equipment cost is the most significant cost in a Startup accounting for $10,000 to $125,000 on average.
  8. Startups raise close to three rounds of funding before receiving Series A funding.
  9. The average Series A round is $15.7 million, followed by the Series B round ($30.7 mil.), and then the Series C round ($55 mil.)
  10. Individual venture capital firms receive over 1k proposals per year and are mostly interested in startups requiring an investment of at least $25k
  11. One in every three small businesses starts with less than $5,000.
  12. According to a study by Th Economic Times, global venture funding is expected to fall 19% in the second quarter of 2022.
  13. In 2021, early-stage funding amounted to $210 billion throughout 8,000 startups.
  14. Dealroom said $10.1 billion is invested in the Fintech sector as of 2022. This makes it the most invested industry.

Here is a list by Dealroom that shows the industries with the most investments:

IndustryAmount invested in 2021Amount 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
  1. Between 2016 and 2020, funding for AI startups increased by 327 percent.
  2. Only about 1% of Kickstarter projects raise over $1 million.
  3. Y Combinator has had the most startup exits of any US-based accelerator.
  4. For US-based startups, the average time between initial Venture capital and Initial public offering exit is 5.3 years.
  5. 75% of Venture Capital-backed startup companies never pay back their investors.
  6. In 30-40% of scalable startups, venture capitalists lose all their money.

Sources: Business.org, Statista, Nerd Wallet, TechCrunch, Fundz, Small business Trends, The Economic Times, Crunchbase, Dealroom, Failory.

Startup Team Statistics

  1. It takes an average of 6 months to hire a worthy person for a startup.
  2. Startup teams with high levels of experience but medium to low levels of enthusiasm and collaborative vision performed worse overall.
  3. Another study by Harvard Business Review shows that 60% of Startups fail due to problems within teams.
  4. Most startup employees work 50-60 hours each week, and many entrepreneurs work 60-100.
  5. Startup sizes are shrinking. The average number of employees in a startup has fallen by 20%, from 5 employees in 1994 to 4 employees in 2019.
  6. In India, Around 40-50% of people who leave startups are recruited by IT firms, consultancy and product firms, and global captive centers (GCCs).

Here is a list of Indian Companies that have recruited  the most number of people in Q4 FY 2022:

CompanyNo. Of People Recruited
Wipro45,416
TCS35,209
Infosys21,933
Cognizant12,200
Tech Mahindra6,106
HCL Technology2,223
L&T Technology743
  1. In India, During the Startup Funding Cold season of 2022, Over 11,000 employees have been laid off.
  2. According to the layoff tracker, at least 20,500 employees have lost jobs at tech startups worldwide since April 2022, with the United States leading the pack.
  3. According to the poll, well-funded companies are likely to hire 20-25 percent more mid-to-senior personnel in the current quarter than a year ago.
  4. The figure raised $7.5 million in seed funding to help startup employees. 

Sources: Forbes, Harvard, stlouisfed.org,  analyticsindiamag, Economic Times, Economic Times 2, TechCrunch.

Startup Demographic Statistics

  1. Startups with a core team of 25 or younger surpass all other age groups.
  2. 20% of Startups have at least one female on the founding team. The number was 10% in 2009.
  3. Female founders have globally raised venture capital worth $5 billion.
  4. 28% of US Startups have at least one female founder.
  5. 14% of US Startups have female CEOs.
  6. There is a 1.5% gender founder gap in China.
  7. There is a 4.5% gender founder gap in japan.
  8. There is a 2% gender founder gap in Colombia.
  9. Only 15% of Unicorn startups in India have female founders.
  10. Among India’s 15 Unicorn Startups in 2022, 5 of them have a female co-founder.
  11. The rate of new entrepreneurs among female US residents in 2021 was 0.28%
  12. Google has a $5 million fund for black founders. Their initiative’s hashtag is #FundBlackFounders
  13. The average age of a startup founder is 45. Despite that, 40% of startups are run by people aged below 40 years.
  14. Stanford University has 1,127 company founders as its alumni making it the university with the most entrepreneurs. Alphabet is also founded by a couple of Stanford Alumni (Larry Page & Sergey Brin).

Sources: Statista, First Round, Your Story, Statista 2, Wikipedia.

Unicorn Startup Statistics

  1. ByteDance is the Unicorn Startup with the highest valuation.

Here is a list of the top 10 unicorns with the highest valuation:

CompanyValuationIndustry
ByteDance$400 BillionInternet TEchnology
SpaceX$125 BillionAerospace
Shein$100 BillionE-commerce
Stripe$95 BillionFinancial services
Canva$40 BillionGraphic designing
Checkout.com$40 BillionFinTech
Databricks$38 BillionSoftware
Revolut$33 BillionFinTech
FTX$32 BillionCrypto
Epic Games$31.5 BillionGaming
  1. North American Unicorn Valuation is worth $929 Billion.
  2. Finance and Insurance unicorns globally have a $526 billion valuation.
  3. North American unicorns receive a share of 35.4% in equity funding.
  4. Transportation and Logistics unicorns receive a 25.58% of the equity funding share.
  5. Alibaba is the biggest Unicorn Exit globally.
  6. There was an 1167% change in Whatsapp’s valuation after Meta acquired it in 2014 for $16 billion.
  7. There are over 1,100 Unicorns worldwide as of 2022.
  8. There are 103 Unicorns in India as of 2022.
  9. There are 607 Unicorns in the USA as of 2022.
  10. Europe has 130 unicorns as of 2022.

Sources: Statista, PitchBook,  Inc42, Europe Unicorn Map, Cb Insights.

Related Read:

Conclusion: Startup Statistics 2022

Many of today’s megacorporations, such as Meta, Apple, Google, Amazon, Canva, Byjus, and many more, began with a person and an idea. You may be reading this article because you have an idea that you want to get out in this world.

Today, thousands of companies are attempting to do so in industries as diverse as gaming, crypto, healthcare, fashion, and banking. Now, most are likely to fail. If you have read the statistics, then you know why. However, a select handful will see their ideas turn into Unicorns!

If you wish to achieve unicorn status, You must align many factors such as the right product, the quality of your service, the appropriate market, and the right timing. All these factors are critical for attracting investors and building a new enterprise.

Use this updated set of Startup Statistics to your advantage and make the best possible decisions!

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