Here’s a curation of some facts about Startups and their Founders that we think you should know about. The world of Startups is interesting as it is mystifying and although there’s so much we could share, we’ve carefully sifted through our collection to bring you our top 12. Without much ado, let’s jump in. 

#1. 3 New Startups are founded every second

Despite the challenges facing startup founders and the high failure rates of startups, 3 new startups are founded every second. This brings the total number of startups to approximately 28,800 per day. Perhaps it is a game of numbers, and while you may wonder where all these startups are and why you’ve never heard about most of them, the next fact has the answer you’re searching for.

#2. 90% of startups fail in the first year

10%, that’s the number of startups that make it out of the startup failure pool. Most startups fail within the first 2 to 5 years and many others never make it out of the idea phase. In the end, very few startups survive the early phase and we never get to hear about them. But for the few that make it past the early phase of their existence, the majority of them still fail later on. In the end, only about 10% are actually successful.

#3. Most startup founders are men

Men found most startups and there’s a generally accepted assumption that confidence is the reason behind this. But for the most part, women-founded startups though few prove to have a higher success rate compared to men-founded startups. However, there’s no hard evidence to back up any of these assumptions.

#4. A startup with a team has a higher chance of success

Team spirit isn’t a corny phrase, it is real. Throughout history, most successful founders had a team of equally enthusiastic and determined people working with them. It shows that teamwork is the best work and startups that embody this team spirit early on in the game have a higher chance of success. 

#5. Most successful startups were once rejected 

Rejection is part of the game and any founder should know this. From trying to win over investors to trying to convince customers to purchase your product, the startup journey can be emotionally draining. But it’s not a new thing. In fact, many founders of successful startups faced rejection either on a personal or business level. 

#6. Startups provide job opportunities for over 3 million people

Startups contribute a great deal to the job market. The precise number of job opportunities provided by startups stands at about 3 million per year. Although job security in a startup hangs on a thread considering the high failure rate of the industry, it still makes a big difference in upscaling the job market, especially within the first year of being founded. 

#7. Not all startups are tech-based. 

The word startup has become synonymous with tech firms. However, not all startups are tech-based. Startups span across many industries both tech and non-techs, however, most startups are found within the tech industry which is the reason behind the assumption that startups are tech-based firms. Another reason for the misconception is the fact that nearly all startups leverage the existing technology. This could make it confusing to distinguish between tech startups and non-tech startups like Uber and Airbnb. 

#8. Most startup founders have a degree

The debate on whether you need a degree or not to start a company has been going on for a while. Thanks to a handful of founders who dropped out of college to start a successful company. But on a closer look, most startups are founded by people who have a degree. One study from 2007 showed that more than 90% of founders held a bachelor’s degree. Perhaps the debate is fueled by the fact that most famous companies like Facebook, Apple, and Microsoft were founded by college dropouts. 

#9. The US has the highest number of startups 

When it comes to starting a company, many things are in play, among them is location. The United States is leading the rest of the world in the number of startups, but this isn’t just a coincidence. The US provides the best opportunities for starting a company. It takes about 4 days to start a company in the US compared to the rest of the world. In terms of number of startups, India comes in second place with about 13,125 startups and the UK is third with 6,220 startups. Both countries do not produce half as many startups as the US which has about 71,153 startups. 

#10. E-commerce is the most lucrative industry for startups 

Tech startup firms like Nothing often seem to be the day's highlight, but according to statistics, e-commerce is more lucrative for startups than any other industry. Online shopping is the order of the day and in 2019, the total amount of e-commerce sales were over 3 trillion dollars. This number is said to be on a steady increase after the Coronavirus pandemic. More people are now used to the convenience of online shopping which only gets better with each passing day. 

#11. The most valued startup in the world is Bytedance 

The name may not ring a bell but Bytedance is the most valuable startup in the world. The Chinese company and owner of the famous social media platform Tik Tok is valued at about 350 billion dollars. This makes it the leading Unicorn company out of an estimated 590 unicorn companies in the world. A unicorn company is one that has a valuation of $1 billion. 

#12. Most startups fail because they misread the market

(Failory)

The startup failure rate is as alarming as the founding rate. There are many reasons that would explain why so many startups die out before they even have the chance to bloom. Among these, the top reason is that the founders misread the market. This is where research comes in. Startups by nature are fast-paced and this is good because a quick launch of the product would serve as a means of obtaining information about the product. 

This first product is referred to as MVP or Minimum Viable Product. However, what most founders realize is that after going all in, there’s no market for their product and this causes the startup to fold up. It goes without saying that in the world of startups, it’s not just enough to have a good product, you should also ensure there’s a market for your product, otherwise, failure is imminent. 

Conclusion

These are 12 quick facts about startups. We hope it was informative and at the same time exciting. For more in-depth information about startups visit our website at www.epirus.vc. At Epirus Ventures, we do more than just provide the right information, we also empower founders and entrepreneurs by leveraging on our expertise, experience, knowledge, and connection to take your business to the next level. As Steve Jobs said, “great things in business are never done by one person. They are done by a team of people”

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