Startup Statistics In 2024: Failure Rates, Funding & Insights

Statistics reveal that 9 out of 10 startups worldwide fail, and less than 1% of the startups manage to make it to the list of Unicorn Startups.

Besides, if you are a first-time business owner, you have just 18% of the chances to succeed with your startup. These low success rates are the result of capitalization, competition, lack of market knowledge, and more. 

In this article, we will discover the latest facts about startups, their success and failure, funding, and more. 

So what’s the wait for? Let’s get started. 

StartUp Statistics 2024: At a Glance

  • There are more than 150 million Startups worldwide, of which 77,927 startups are in the United States.
  • 1,361 startups globally hold the unicorn badge.
  • The global startup failure rate is 90%.
  • First-time founders have a startup success rate of 18%.
  • Business owners who failed in the past have a slightly higher startup success rate of 20%.
  • One-third of the startups fail due to the lack of product demand.
  • The average cost of starting a business is $40,000.

Number of Startups 

On average, 137K startups are launched every day. However, most of them fail before reaching a well-established phase.

Let’s take a look at the number of startups that are running successfully as of 2024.

There Are Over 150 Million startups in the world

50 million new startups are established every year. That means, on average, 137,000 startups are launched every day. 

However, only 10% can sustain themselves in the long run.

Source: Microsoft

There Are 77,927 Startups In The United States

Most of these startups emerge from Silicon Valley. 

The country has the highest number of Startups worldwide. India follows the United States with 16,323 startups.

Number Of Startups

The following Table includes further details about number of startups by country:

CountryNumber of Startups
United States77,927
United Kingdom7,070

Source: Startup ranking

Startup Failure Rates 

9 in 10 startups that are launched fail. Only 10% of the startups worldwide survive. 

This is because the majority of the startups are not well-planned and researched. Plus, most of the new startups have founders with no experience. 

Let’s take a closer look at the facts about startup failures. 

90% Of The Startups Fail

10% of the startups fail within a year of establishment. At the same time, 70% of startups fail between the second and fifth years. 

The startup failure rates increase over time. The majority of businesses throughout the industries fail within 10 years of establishment. 

Hence, in the long run, 90% of the startups fail, and only 1 in 10 startups are able to survive. 

Source: Failory. 

Only 10% To 20% Of The Startups Become Successful In The Long Run 

First-time business owners have a success rate of 18%. While, the business owners who failed in the past have a slightly higher startup success rate. 

On the other hand, business owners who have had a successful startup in the past have a success rate of around 30%. 

Most successful startup owners claim they have the relevant qualifications and experience to run their own business. 

Source: Small business trends, Failory. 

80% Of The Startups In The United States Fail

Canada and France, too, have a similar failure rate. 

The highest Startup failure rates are recorded in South Africa. The Major reasons are lack of funding, regulatory obstacles, infrastructure deficits, limited mentorship, frugality issues, and inadequate marketing and branding.

Startup Failure And Success Rates

Here are further details about the startup failure and success rates recorded in different countries worldwide.

CountryStartup Failure RateStartup Success Rate
The USA80%20%
The UK70%30%
South Africa86%14%
Hong Kong70%30%

One-Third Of The Startups Fail Due To The Lack Of Product Demand

34% of the startups stated that their failure was due to a lack of demand for their products. 

Meanwhile, 2 in 10 startups fail because they are not able to market their products properly. 

Here are further reasons that contribute to the failure of a startup: 

  • Lack of product demand: 34%
  • Marketing Problems: 22%
  • Team Problems: 18%
  • Financial Problems: 16%
  • Technical Problems: 6%
  • Legal Problems: 2%
  • Operational Problems: 2%

Source: Luisa Zhou. 

Unicorn StartUps

Less than 1% of the startups are able to cross a valuation of $1 billion. These startups are known as Unicorn startups. 

Some of the popular unicorn startups worldwide are Uber, Airbnb, SpaceX, and more. 

There Are Over 1,361 Unicorn Startups From 48 Countries

1,361 Unicorn Startups Exist Across 48 Countries

Globally, 2,723 startups have achieved a valuation of more than $1 billion. Of these, only 1361 are still private and venture-backed, while over 225 are rumored and unverified. 

About 1% of startups evolve into unicorn startups. Since 2018, more than 250 new unicorns have been created each year. However, in 2021, the number increased to 787.

There are over 1.5K Unicorn startups in the United States.

The United States has the highest number of Unicorn startups worldwide and is followed by China with 1,500  and 348 Unicorn startups, respectively. 

Other countries that make it to the top 5 with the highest number of unicorn startups are the United Kingdom, India, and Germany. 

The following table provides further details about the countries with the highest number of Unicorn Startups.

CountryNumber of Unicorn Startups in 2023Number of Unicorn Startups in 2022

Source: Dealroom. 

Bytedance, The Chinese Tech Company, Is The Leading Unicorn Worldwide 

The firm is valued at $223 billion currently.

The second most prestigious Unicorn company is SpaceX, with a valuation of $137 billion. 

Here are further details about the top Unicorns worldwide and their Valuation:

  • ByteDance: $200 billion
  • SpaceX: 137 billion
  • ANT Group: 120 billion
  • Shein: 65 billion
  • Stripe: 50 billion
  • WeBank: 33 billion
  • Databricks: 31 billion
  • Telegram: 30 billion
  • Revolut: 28 billion
  • Cainiao: 27 billion

Source: Statista

The average cost of startups

The average cost to launch a startup may vary according to your niche, industry, products, services, and more. 

Some people reported starting a business with just $5000, while others initially required $40,000 or more for their startup. 

Let’s take a closer look at the average cost required to run a startup. 

The Average Cost Of Starting A Business Is $40,000 In The First Year

Starting A Business Costs An Average Of $40,000 In The First Year

This may vary depending on factors like industry, products, services, and store location. 

The cheapest businesses may cost as little as $12,000 initially. In contrast, other businesses, like restaurants, may cost $400,000 or more. 

The following table displays the average cost to start a business in different industries.

IndustryThe average cost to start a business
Food and restaurants$375,000

Source: Bankrate. 

Almost 58% Of The Small Business Owners Launched Their Businesses With Less Than $25,000 

Almost 3 in 5 startups have less than $25,000 at their disposal during the startup phase. Meanwhile, a third of businesses start with less than $5000. 

The U.S. Census Bureau recently found that the median cost of starting a small business is $25,000. 

Source: CNBC

Startup Funding Statistics

Fundings enable startups to sustain and grow. Potential startups get good funding in different rounds, enabling them to succeed in the long run. 

Most Unicorn startups managed to make it into the list with the help of these fundings and investments. 

Here are some of the latest statistics about startup funding and investments. 

In The First Half Of 2023, Global Funding For Startups Reached $144 Billion

Global Startup Funding Reached $144 Billion In H1 2023

This was a decrease of 51% from the $293 billion invested in H1 2022 and a 10% decline from that invested in 2nd half of 2022.

At the same time, Seed-funded startups raised $6.8 billion in Q2 2023. It was down by 39% from the $11.2 billion invested in Q2 2022.

Note: We don’t have data for H2 2023 yet. Let’s wait for the figures to come out. 

Source: Crunchbase. 

31% Of Startup Capital For Employer Firms Is Less Than $10,000

Meanwhile, 18% of startup capital for employer firms is $250,000 or more. 

The average seed round is $2.2 million, which is 200 times the $10,000 of startup capital that the average small business needs. 

Source: Embroker, Fundera

Venture Capital Funding Reached $209.4 Billion In 2022

This was the second-highest funding for venture capital investments. 

The VC fundraising activity totaled $162.6 billion in the United States in 2022. That was up by 5.5% from 2021. 

Further, the global venture funding in 2022 totaled $445 billion. This was a 35% decline from 2021.  

Source: Yahoo Finance, Real economy

77% Of The Businesses Rely On Their Savings For The Initial Funds

Although about 100% of headlines on startup funding cover venture capital, only 0.05% of the startups raise venture capital. 

The rest of the businesses raise the money for their startups through banks and loans, friends and family, credit cards, angel investors, and personal savings.

Source:  Fundera

Male founders received Venture Capital funding of $156.2 billion, while female founders received  $28.1 billion in 2022

The investments in companies founded by women reached $3.6 billion in 2022.

In 2023, the women-founded companies received just 2.1% of the total capital invested in venture-backed startups in the United States. 

These stats bring the gender gap in the funding rounds into the limelight. 

Venture capital percentage

The following table displays the share of venture capital funding received by the startups that are solely founded by women and had both male and female founders. 

YearVenture capital percentage for startups founded by female-onlyVenture capital percentage for startups founded by male and female

Source: Pitchbook.  

Startup Founder Demographics

The startup founders have different demographics worldwide. However, most startup founders are white men with an average age of over 40 years.  

Here are further details about the demographics of the startup founders. 

The Average Age Of A Startup Founder Is 42 Years Old

59% of the startup founders worldwide are over 40, and just 16% are between 20 and 30 years old. 

According to the US Census Bureau, the average age of founders across all businesses worldwide is 42 years. 

The average age of the founders for the top 0.1% of the highest-growing startups is 45 years old. 

A 60-year-old startup founder is more likely to run a successful startup compared to a 30-year-old founder. 

Ages Of Startup Founders

The following table displays the breakdown of the ages of startup founders worldwide. 

Age Percentage of Startup founders. 
40+ years59%
30-40 years25%
20-30 years16%

Source: HBR.

64.3% Of The Founders Are Male, While 35.7% Are Female

The percentage of female founders was just 17.64% in 2020, and that of male founders was 82.36%.

It is impressive that the number of female founders has also increased over the past year, and the gender gap is decreasing with time. 

The following table displays the percentage of male and female founders recorded over the years. 

YearPercentage of Male foundersPercentage of Female founders

Source: Zippia. 

With 62.8%, Most Of The Founders Worldwide Are White

Over 6 in 10 founders worldwide are white. Comparatively, in 2020, 75% of the startup founders worldwide were white. 

16.9% of the startup founders are Hispanic or Latino. In contrast, just 0.9% of the American Indians and Alaska Natives are startup founders. 

Here are further details about the race of startup founders worldwide. 

  • White: 62.8%
  • Hispanic or Latino: 16.9%
  • Black or African American: 10.8%
  • Unknown: 4.9%
  • Asian: 3.7%
  • American Indian and Alaska Native: 0.9%

Source: Zippia. 

71% Of Startup Founders Have Completed Just A Bachelor’s Degree 

Nearly three-fourths of startup founders have just a bachelor’s degree. While 16% of the founders stated they have a master’s degree. 

Just 3% of the founders worldwide own a doctorate. 

The education level of a person does not make him a successful founder. However, a person’s experience and knowledge in the industry help a startup succeed. 


Educational Qualifications Percentage Of Startup Founders

The following table displays the educational qualifications of the startup founders. 

DegreePercentage of startup founders that 
Other Degrees4%

Source: Zippia. 

Startups by Industry

IT startups have the highest failure rate, at 63%.

At least 1 in 2 manufacturing businesses fail worldwide. Retail startups have a failure rate of 53%. 

The following table displays the failure rate of startups recorded in different industries worldwide. 

IndustryStartup failure rate
Transportation and utilities55%
Education and health44%
Financial insurance and real estate42%

Source: Failory. 

Fintech Startups

With over 26,000 startups worldwide, Fintech has the highest number of startups. 

Here are further details about the fintech startups worldwide. 

There Are Over 26,300 Fintech Startups Worldwide

This number has more than doubled since 2019, when there were only around 12,000 fintech startups. 

The United States produces the most value in fintech, with 134 unicorns in 2023. 

The United Kingdom is in second place with 27 fintech unicorns, and India is in third place with 17. 

Number Of Fintech Startups

The following table displays the Fintech Startups recorded over the years.

YearNumber Of Fintech Startups

Source: Mint, Salientpr.

There Are Over 10,755 Fintech Startups In The United States As Of 2024

This number has doubled since 2020, when only 5,686 fintech startups existed. 

The fintech market in the United States is worth $4 trillion as of 2024 and is predicted to grow at a CAGR of 11% till 2028. 

That means that the number of Fintech Startups in the US will also increase rapidly in upcoming years. 

Number Of Fintech Startups

The following table displays the number of Startups recorded in the United States over the years. 

YearNumber Of Fintech Startups

Source: Mordor Intelligence, CFTE.

11,651 Fintech Startups Are In The Americas, Making It The Region With The Highest Number Of Fintech Startups As Of 2024

In comparison, there were 10,755 and 5,686  fintech startups in the region in 2021 and 2018, respectively. This number has doubled since then. 

Another fact that these figures bring into the limelight is that the fintech startups in the APAC region decreased by over 1000 compared to 2021. 

The following table displays the number of fintech startups in different regions.


Source: Statista

The Total Value Of Investments In Fintech Companies Was $52.4 Billion In The First Half Of 2023

Investments in fintech companies increased drastically between 2010 and 2019, reaching $216.8 billion.

However, in the next year, the investments decreased. Later, in 2021, investments in fintech companies peaked at $247.2 billion. 

Here is a table displaying further details about the total value of investments into fintech companies recorded over the years. 

YearTotal value of investments in fintech companies
H1 2023$52.4 billion
2022209.3 billion
2021247.2 billion
2020138.8 billion
2019216.8 billion
2018148.6 billion
201759.2 billion
201663.4 billion
201567.1 billion

Source: Statista

E-commerce Startups 

E-commerce is one of the fastest-growing industries worldwide, with hundreds of startups being created every day. 

This section covers details about e-commerce startups and businesses. 

E-Commerce Businesses Have A Success Rate Of 10% To 20%

Most businesses fail within the first 120 days. 

In North America, 70% of e-commerce startups fail within five years.

Most e-commerce businesses fail as they cannot understand their consumers’ needs. Some other reasons for e-commerce startup failure are lack of market knowledge, no demand for products in the market, improper services, and more. 

Source: Fit small business, The B2B house

There Are More Than 26.5 Million E-Commerce Sites Worldwide

This is a significant increase from 9.2 million in 2019. The United States accounts for more than half of them. 

According to the latest figures, there are nearly 14 million e-commerce sites in the United States, accounting for 53% of the e-commerce sites worldwide. 

In comparison, the United Kingdom and Brazil are second and third, with 1.24 million and 730,000 e-commerce startups, respectively. 

The following table displays the number of e-commerce startups recorded worldwide. 

CountryNumber of e-commerce startups
United States13,980,000
United Kingdom1,249,000
India 430,000

Source: Digital Commerce 360


The number of technology startups emerging daily has increased over the past years. However, very few of them manage to stay in the market even for a year. 

Let’s take a look at the statistics about technology startups in this section. 

63% Of The Tech Businesses Fail Within Five Years

The failure rate of tech companies is relatively high compared to other industries. 

Some of the major reasons for their failure are lack of capital, poor products,  inadequate funding, inexperienced teams, and ineffective leadership. 

Every year, 20 tech companies are launched in the United States that will generate a revenue of $100 million.

Source: Forbes.


Establishing a startup in healthcare requires time, money, and patience. It will be a long run until your startup will be established. But many business owners give up even before they get successful. 

Here’s why!

90% Of Health Startups Fail

21.5% fail in the first year, while 30% fail in the second year. By the end of the 5th year, 50% of the medtech startups fail, and by the 10th year, 70% fail. 

The major reason why health startups fail is the lack of market demand. Many startup owners fail to analyze the market and verify product demand. Hence, rushing to launch the product often leads to failure.  

Source: LinkedIn

There Are 41,550 Health Tech Startups In The United States

United States Has 41,550 Health Tech Startups

This number has grown rapidly in the past three years. Further, the experts predict that the number of health tech startups will reach 50,000 by 2025.

Healthcare startups have the potential to impact global health disparities significantly. Factors like poverty and socioeconomic conditions drive these disparities. 

Source: Tracxn

Small Business Statistics

Small business startups usually run on a local level. They sell products that have demands in the local market and have a greater chance of being successful if they manage to identify the needs of their target audience. 

82% Of Small Business Startups Fail Because Of Cash Flow Mismanagement

More than 8 in 10 small businesses admit that they failed because they experienced cashflow problems.

A cashflow problem occurs when a business has more costs than income. That means the business doesn’t have enough to pay payroll or other operational expenses. 

Source: Luisa Zhou. 

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