100+ Startup Statistics In 2023: Current State, Funding And More

Startup Stats

The state of startups in 2023 is interesting. Startups are attracting significant investment, with global venture capital funding reaching over $540 billion in 2022, and this trend is expected to continue in 2023.

The way to become a successful startup is not smooth, with the failure rate being 90%.

Factors like rising inflation and interest rates are making it more difficult to sustain startups these days. However, investors still might want to invest heavily in well-structured startups that can outweigh all the cons.

But how can you get a startup there? Well, in this post, we cover various aspects of startup culture in numbers that can help you with different aspects of your venture.

Startup Statistics Top Picks (2023)

Before diving into the categorial startup statistics, here is an overview of the most important facts and figures associated with startups worldwide as of 2023:

Startup Statistics 2023 Infographics
  1. There are over 150 million startups in the world.
  2. 50 million new startups emerge every year, but only 10% are able to sustain themselves in the long run.
  3. The failure rate of startups is 90% globally.
  4. Most startups fail due to funding running out or lack of market demand for products.
  5. It takes 2-3 years, on average, for startups to make a profit.
  6. 61% of Startups offer B2B solutions, while only 39% of Startups offer B2C solutions globally.
  7. North America has the highest number of unicorn startups, followed by Asia and Europe.
  8. The United States has the most number of startups as of 2023.
  9. Bytedance is the highest-valued startup in the world, with a valuation of $220 billion as of September 2023.
  10. Startups around blockchain, E-commerce, Artificial intelligence, and Fintech are growing rapidly as of 2023.
  11. 15.4% of the US population is involved in startups.
  12. Finding a real problem is the biggest challenge faced by startups nowadays.

General Startup Statistics

  1. 60% of startups begin at home.
  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 have given rise to 600,000 jobs in the country to date.
  5. According to NGP Capital, there were 190,000 job ads placed by startups in the United States between January 2022 and March 2023. This is equivalent to roughly 25 job openings per startup.

As per Statista, the USA created 3,114,111 new jobs via startups in 2020 alone.

Startup Statistics - Number Of Jobs Created Through Startups
Source: Statista
  1. There are currently around 33.2 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
The UK6,396

Also Read: Top Tech Startups

  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 University.

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

Statistics On Failure And Success Rates Of Startups

  1. 9 out of 10 startups fail.
Anand Mahindra Tweet About Startup Failures
  1. 20% of startups fall apart post the 1-year mark.
  2. 30% of startups fall apart within the 2-year mark, while 50% do so within 5 years.
  3. 70% of startups close within a decade.
  4. The most common reason for startup failure is the lack of product demand — 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%

Read our 2023 report on startup failure rates.

  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%) of 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 the Gaming Industry have a 50% success rate.

Startup Failure Rate By Country

South Africa has a failure rate of 86%, while the United States has an 80% failure rate.

You might wonder how startups in well-developed countries have such a high failure rate. Well, there are many reasons, such as high labor costs and a saturated market. The concerns in developing countries can be poor infrastructure, corruption, and a lack of skilled workers.

Here is a table showing the startup failure and success rates in different countries:

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

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

Startup Failure Rate By Industry

Startups in the blockchain and cryptocurrency industry have the highest failure rate (95%). Venture-backed fintech startups follow with a 75% failure rate.

Here is a table showing the industries with the highest failure rates:

IndustryFailure Rate
Blockchain and Cryptocurrency95%
Venture-backed Fintects75%
Ecommerce and Retail53%

Startup Funding and Cost Statistics

  1. In the initial phase, 58% of startups have less than $25k at their disposal.
  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 Q4 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 Q4 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 million), and then the Series C round ($55 million)
  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 The Economic Times, global venture funding was expected to fall 19% in the first quarter of 2023.
  13. In 2021, early-stage funding amounted to $210 billion throughout 8,000 startups.
  14. One survey shows that $10.1 billion has been invested in the Fintech sector as of 2023. This makes it the most invested industry currently.

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%.
  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.

Workforce Related Insights On Startups

  1. It takes an average of 6 months to hire a worthy person for a startup.
  2. Startup teams with high experience levels but medium to low 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 weekly, 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 2022:

CompanyNo. Of People Recruited
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. Check out our detailed post on layoff statistics.
  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.

How Does Demographics In The Startup Culture Look Like?

  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.

Facts and Figures On Unicorn Startups

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

Bytedance is the parent company of social media giant TikTok, which is now 1.06 billion users strong.

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

ByteDance$220 BillionGraphic Designing
SpaceX$137 BillionAerospace
ANT Group$120 BillionFinancial Service
Shein$165 BillionE-commerce
Stripe$50 BillionFinancial services
WeBank$33 BillionFinancial Service
Databricks$31 BillionSoftware
Telegram$30 BillionInstant Messaging
Revolut$28 BillionFinancial service
Cainiao$27 BillionLogistics
  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 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 2023.
  8. There are 103 Unicorns in India as of 2023.
  9. There are 607 Unicorns in the USA as of 2023.
  10. Europe has 130 unicorns as of 2023.

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

Food Tech Startups Are On The Rise

When we think about startups, we tend to think about fintech, EdTech, and Financial businesses. If you see our 57th statistics in this post, you will see that the Food industry stands in the 3rd spot in terms of investment. Well, it is so because the Food industry is seeing a revolution, and not many people are aware of it. Although there is a huge number of people using the services, investors and entrepreneurs are unaware that something like this can also happen.

For starters (pun intended), there are more than 10,500 startups in the food technology sector globally, primarily of businesses that create next-generation foods to replace traditional dietary habits. This comprises businesses involved in developing SaaS-based solutions, IoT-enabled food appliances, and online platforms for finding, buying, and selling food and drinks.

Here is a section dedicated to interesting food-tech-related statistics that are sure to grab your attention to this budding sector:

  1. There are over 10,500 food tech startups in the world. 3,705 of them are in the U.S. alone.
  2. In 2021, venture capitalists made 1,360 deals totaling more than $39.4 billion in investments in the food technology sector.
  3. The global food tech market was worth $220.32 billion in 2019. The anticipated 6% growth rate in the food tech sector will take the industry market size to a value of $342 billion by 2027.
  4. From approximately 300,000 vegans in 2004 to 9.7 million in 2019, the number of vegans in the United States increased more than 33 times in that time. How is this stat relevant? Well, the number of food tech startups that are mimicking meat is growing.
  5. DoorDash and Impossible Foods are two of the biggest Food Tech companies in the United States.
  6. In order to attract more consumers, 80% of restaurants use technology.
  7. Smartphones are used to place over 15% of restaurant orders.
  8. After the epidemic struck, 25% of restaurant operators let clients place orders using apps.
  9. The Indian food tech sector is expanding at a compound annual growth rate (CAGR) of 39%

Consumers now have more quick access to high-quality, wholesome food thanks to startups in the food technology sector. Additionally, enterprises will be able to manufacture and sell food of all types at a lower cost and with greater profitability. The development of supply chain technology, logistics, and eCommerce all contribute to and speed up this sector’s growth.

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