Are you planning to commence a startup? If yes, this post will help you because it will provide you with all the answers to the queries that cross your mind.
So what are you waiting for? Let’s gear up and answer all about the startup success statistics.
The startup world is full of unknowns. It is difficult to find the right metrics and statistics to gauge the success and failure of a startup. The founders are often too busy with their day-to-day work to have research and data collection time.
This guide will help you understand some of the most important unknown 106 must-know stats in the startup world. This includes funding, revenue, growth, and more!
Startup statistics India: An Eye-opener
- India is the world’s third-largest startup nation, with more than 3,400 companies.
- The Indian startup ecosystem has grown at a whopping rate of 15,400% in the last five years.
- The number of startups in India will grow to 72,993 in 2022 from 471 in 2016.
- The Department for Promotion of Industry and Internal Trade (DPIIT) has recognized more than 75,000 startups- a milestone that coincides with the 75th year of independence.
- 75000 Indian Startups created around 7.46 lakh jobs.
- Department for Promotion of Industry and Internal Trade (DPIIT) has recognized startups in India with a minimum of 14,000 solely recognized in the fiscal year 2022.
- There are more than 500 startups in the consumer internet space alone.
- India’s e-commerce market is expected to grow by 60% over the next three years
- India has been ranked the third largest startup hub in the world by Startup Genome.
- A record 44 Indian startups achieved unicorn status in 2021, taking the overall startups to a total number of 83.
- Startups rapidly develop in India because of their large talent pool, low costs, and strong government support.
- India has become a hotbed for startups, and it will continue to grow exponentially as more startups continue to be funded and more jobs are created.
- Cloud computing is one of the trending sectors with an expected CAGR of 24.1% of contribution by the public cloud services market from 2020 to 2025.
- The data analytics industry’s market size is expected to grow to $98 billion by 2025.
- Artificial Intelligence is the third largest contributor in the Industry.
- By 2025, the overall market size will be expected to reach $7.8 billion.
- In 2021, around 9% of the startup founders were females.
- Most of the founders in India are in the age group 31 to 35 years of age.
- In India, most of the startups are embarked by engineering graduates.
- Finance and Insurance are the two leading sectors with unicorns.
- In 2021, One97 Communications was the leading unicorn with maximum worth.
Success Startup Statistics
- On average, the startup success rate is only 10%.
- Startup failure rate is almost the same among all the industries.
- Achievement of Unicorn status is considered one of the major achievements for every country. India recorded 44 startups achieving unicorn status. The total number of Unicorns as of April 2022 was 107.
- Total of unicorns was valued at
- The top 5 industries that produced unicorn startups are E-Commerce & D2C, Fintech Firms, Internet Software & Services, Supply Chain, Logistics and Delivery, and Edtech.
- Total funding of startups has increased 15 times over the last 5 years
- There has been a whopping increase in the total number of investors in the last 5 years. The total number of investors has increased nine times.
- Startups trend has also increased the number of incubators, which has increased seven times that of 2015.
- Startup success rates in India are much lower than in the US. It is because Indian startups focus too much on solving problems that don’t exist in India.
Startup Failure Rates
- Startup failure rate can extend to 90% within the five years of startup.
- 10% of the startups fail within one year of commencement.
- As for the startup success rate, the startup failure rate also remains the same across all industries.
- 75% of startups that are backed by VCs fail.
- 77% of startups in India fail because of the lack of innovation and uniqueness.
- In fact, 77% of startups also fail because of inappropriate products or services.
- India has been the third largest ecosystem but lags because of the absence of meta-level startups like Google, Facebook, and Twitter.
- On average, 90% of startups fail within the initial five years because they lack innovative ideas and exceptional business models.
- 33% of the total startups cross the decade mark.
- 82% of startups face failure because of cash flow problems.
- There are only 40% of startups that turn out to be profitable.
- Considering the statistics of startup failures industry-wise, the Information Technology industry is the highest with 63%.
- The construction industry is the second largest, with a failure rate of 53%.
- Most startups fail because of a lack of marketing.
- Startups’ failure is also because of a lack of team efforts.
- 73% of startups fail because of inaccurate sales estimates.
- Shorter time than the actual time for validation of ideas leads to the failure of startups.
- Around one-fourth of startup businesses do not get funding as per their requirement.
- Tech-related problems contribute to 6% of startups failing.
- Sub-optimal operations may be the reason for the failure of 20% of startups.
- 2% of startups also fail because of legal issues.
- A startup may fail in the next three years because of competition.
- Lack of talent and incompetency is other reasons for startup failures.
- Around 30% of venture-backed startups face a breakdown.
Other Startup Statistics 2022
- VCs get 1000 proposals for startups per annum.
- One-fourth of startup owners do not receive funds.
- 75% of the total startup business financing results from business loans, credit card debt, and other lines of credit.
Demographic Startup Statistics
- Most of the startups are commenced by graduates.
- An entrepreneur in his 60s would be more successful in startups than a 30-year-old.
- Females lead 14% of US startups.
- Overall, $5 billion of capital is raised by female founders.
- Around 15% of Unicorn startups have female founders.
- 5 out of 15 unicorn companies in India are female co-founders.
- 45 years is the average age of startup founders.
Startup Statistics by Industry
- There are around 6,636 fintech startups in India.
- India’s Fintech startup market size was approximately $ 50 billion in 2021.
- Fintech startup market size is likely to increase to approximately $150 billion by 2025.
- Fintech startup’s CAGR by 2025 is expected to be 24.57%.
- India’s Fintech firms are anticipated to have 29% of the projects globally.
- The failure rate of fintech startups has been 75%.
- Current investment in the Fintech startups is $ 50 billion per annum.
Stagewise Startup Statistics
- There are chances that the startup company may overestimate their intellectual property by more than 200%
- Early-stage startups can increase user growth by more than 3.5%
- Early-stage startups can also generate revenue 2.5 times than estimated.
- Primary setup during the idea-stage of the should primarily focus on the product-market fit.
- Idea stage is followed by the discovery, validation, efficiency, and scale stages.
- Most startups fail at the later stage, which scales up prematurely.
- 10% to 30% of startups have an Initial startup amount of less than $5000.