Startup Statistics

How does your mind react to the word ‘startup’? If it’s a dingy basement in Bangalore, then you’re not alone. Masses think of startups as a threshold for chaos.

During the initial stages of starting your business, startup funding is crucial. Your initial funding comes from your own pocket. Meanwhile, you need to look for startup fundraising in India as per your advantage. The aim is to raise outside capital.

For tracking the latest trends, scroll down to know more about the startup statistics. Check out the information on startup fundraising in India, stats, trends, etc.

Startup Statistics and Trends

The average time between startup funding phase 1 i.e. Series A is 22 months. The second phase takes 24 months. The third phase takes 27 months.

  • For Series A, 47% of the startups spend $400k per month.
  • The average amount of funding in Series C is $50million.
  • In 2015, 2 million job opportunities came into existence due to startups.
  • In 2018, 30.2 million small businesses started their operations.
  • Organizations raise three rounds before they get to Series A funding.
  • In 2017, 67% of Series A startups generated revenue before the startup funding.
  • The average Series A reached $12.1 million in 2017.
  • A 2018 study shows that a 60 yr old is likely to build 3times than a 30 yr old.
  • There were 145 active unicorns in the U.S. in 2018. The amount was worth $555.9 billion. 
  • 69% of the U.S businessmen started their business at home.
  • The details of your data, the time of year of your pitch, and the value of the pitch deck are the most important.
  • It only takes 6 days to start a business in the U.S.
  • 66% of the startups outsource their services to other tiny businesses.

Startup Success Rate

  • As per the US Census Bureau, the highest 5 yr survival rate is mining at 51.3%.
  • Existing founders in a business have 30% chances of success in their new business.
  • 82% of the startup owners say that they’ve got the right qualifications and experience. Even if they have a limited fund source.
  • Paying attention to your clients is important as 14% of startups fail due to this.
  • Founders who fail have a 20% chance of success. First-time founders have an 18% chance of success.
  • The U.S healthcare industry was the strongest in 2017 which brought $36.3 billion in revenue with Inc. 5000 organizations.

Startup Failure Rates

  • 90% of the startups fail.
  • 10% fail within the first year.
  • 42% of the startups fail because they misread the market demand.
  • 29% of the startups fail because they run out of startup funding and personal money.
  • 23% of the businesses fail because of a weak founding team. 19% of them fail because of their competitors.
  • Atleast 10% of the startups fail due to cost issues, poor marketing, and product mistiming.
  • 82% suffer cash flow problems as reported in 2018.

Despite the startup failure rate, it’s important to learn from your business mistakes. The key to startup survival and success rate is important. Know where you stand, and appreciate the competition. Take note of all the startup trends to be at the top.

By Manali