89 Interesting Start-up Statistics

Here is a collection of stats about start-ups we found interesting and useful. Here we have covered:

  • How many start-ups are there?

  • How successful are start-ups?

  • How does age impact the likelihood of start-up success?

  • What is the average size of start-up funding rounds?

  • What are the average valuations by funding round?

  • What is the rate and value of progress through funding rounds for start-ups?

  • What roles or skills are critical for start-up success?

  • Are men or women better start-up entrepreneurs?

  • What are some of the key Australian start-up stastistics?

How many start-ups are there?

According to Get2Growth there are:

  • 472 million entrepreneurs worldwide

  • 305 million start-ups operating annually

  • 100 million new start-ups a year

How successful are start-ups?

According to Failory:

  • Around 90 per cent of start-ups fail

  • Around 10 per cent of start-ups will fail in the first year

  • Around 70 per cent of start-ups will fail in years two to five

How does age impact the likelihood of start-up success?

According to Kellogg Insight:

  • A 30 yo is 8.9 times more likely to be successful than a 20 yo

  • A 40 yo is 15 times more likely to be successful than a 20 yo

  • A 50 yo is 19 times more likely to be successful than a 20 yo

  • A 60 yo is 27 times more likely to be successful than a 20 yo

Why do start-ups fail?

According to CB Insights the top ten reasons why start-ups fail are:

  • No market need (42%)

  • Ran out of cash (29%)

  • Not the right team (23%)

  • Get outcompeted (19%)

  • Pricing/Cost issues (18%)

  • User un-friendly product (17%)

  • Product without a business model (17%)

  • Poor Marketing (14%)

  • Ignore Customers (14%)

  • Product Mistimed (13%)

According to Fractyl the reasons why start-ups fail are:

Start-up Failure Fractyl.PNG

 What is the average size of start-up funding rounds?

According to Fundz the average funding size by round in 2019 were (US funding rounds)?

  • Seed Round - $1.1m

  • Series A - $13.4m

  • Series B - $32m

  • Series C - $55m

 What are the average valuations by funding round?

According to Fundz the average valuation by round in 2019 was (US$m)

  • Seed - $7.5m

  • Series A - $22m

  • Series B - $58m

  • Series C - $115m

What is the rate of progress through funding rounds for start-ups?

The table below shows the results of a study by CB Insights. The study is looking at a cohort of US headquarted tech companies (that raised their first round of seed funding either in 2008, 2009, or 2010. It tracks them through to August 2018.

CB insights funding progression.PNG

What roles or skills are critical for start-up success?

According to First Round

  • Start-ups focussed on enterprise perform 230% better than others when one of the founders is ‘technical’.

Are men or women better start-up entrepreneurs?

According to BCG:

  • Start-ups founded and cofounded by women actually performed better over time, generating 10% more in cumulative revenue over a five-year period: $730,000 compared with $662,000.  

  • Startups founded and cofounded by women are significantly better financial investments. For every dollar of funding, these startups generated 78 cents, while male-founded startups generated less than half that—just 31 cents.

According to First Round:

  • Companies with a female founder performed 63% better than our investments with all-male founding teams

What are some of the key statistics for Australian start-ups?

According to Start-up Muster:

  • Start-ups are dominated by men – 77% males and 23% female

  • 31% of start-ups have one or more female Founders

  • 46% of Founders are first timers

  • 35.7% of start-up Founders were born outside Australia

  • 31.8% of start-ups have 2 Founders, 29.5% have 1 Founder and 18% have 3 Founders

  • Over 70% of start-ups are focused on B2B, 45% on SaaS and 33% on B2C

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