80+ Startup Statistics You Can’t Ignore (Updated for 2023)

Industry Trends

We have almost reached 2023, and just like every year you might be planning a lot of resolutions for yourself and your startup. 

A startup for a founder is like a baby. They want to bring it to existence, take it from zero to one and then one to ten. But hey, let’s face the reality too. 

Almost 90% of startups fail due to multiple reasons. It’s not a cakewalk.

This blog contains a lot of interesting facts about startups, their success, failures, funding, different sectors etc. We have compiled all of them to help you get a sneak peek at what’s the status and trends going on, then read it till the end. 

The awareness might help you make better decisions if you are a startup owner or planning to build one.

 Let’s go. 

Table of Contents

In the past few years, startups have become a buzzword, especially in India.

Startup Statistics

Well, a lot of studies happen to take out a lot of interesting insights.

Here are a few of them:

1. Only 2 in 5 startups are profitable, and other startups will either break even (1 in 3) or continue to lose money (1 in 3). (Small Business Trends)

2. Only 17% of entrepreneurs have a bachelor’s degree. (Apollo Technical)

3. After getting to a Series B or C round, you’ll probably work for 15 to 20 months before bringing in new capital. (Forbes)

4. 47% of Series A startups spend $400k or more per month. (Fundz)

Startup Success and Failure Rates

1. Founders with successful business histories have 30% chances that they will succeed in their new business too. (Embroker)

2. 9 out of 10 startups fail every year, that is 90%. (Failory)

3. Founders who have a history of a failed business have a 20% chance of succeeding in the new one while a newbie founder has an 18% chance of success. (Embroker)

4. Out of every 10 Venture backed startups, 7.5 fail. (Failory)

5. 42% startups fail because of the ‘lack of product market fit’ (Forbes)

6. Out of every 10 new businesses, 2 of them fail in the first year of operations. (Failory)

7. 40% of startups actually turn profitable. (Review42)

8. 30-40% of funded startups lose the investor’s money. (Failory)

9. India has 83 unicorns, as of January 2022, with a total valuation of $277.77 billion (Mint)

10. Here are some facts around which department contributes to a startup failure. (Failory)

a. 56% of startups fail because of Marketing problems. 

b. 18% of startups fail due to team problems. 

c. 16% of startups fail due to finance problems. 

d. 6% of startups fail due to Tech problems. 

e. 2% of startups fail due to Legal problems.

f. 2% of startups fail due to Finance problems. 

Startups Funding and Investor Statistics

When startup founders get funding:

Jokes apart, let’s have a look at the statistics.

1. 77% of small businesses use their personal savings for their initial funds. (Fundera)

2.Funding in the first quarter of 2022 almost equals to the annual funding that happened for the entire year 2020. (Inc42)

3. A third of small businesses start with less than $5,000. (Fundera)

4. The yearly revenue of Nykaa amounted to 32 billion rupees in the fiscal year 2022. (Statista)

5. Of startups that raised seed rounds, 1% reached unicorn status of $1B+ valuation. (Fundera)

6. India Edtech startups received around 15% of the total funding amount in 2021. (Statista)

7. Bengalaru followed by Delhi and Mumbai bagged the most deals and funding amount in 2022. (Inc42)

AI Startup Statistics

1. The global AI market is valued at over $136 billion in 2022. (GrandViewResearch)  

2. Global GDP will grow by $15.7 trillion by 2030 because of AI. (TechJury)

3. The value of the AI industry is set to increase by over 13x over the next 8 years. ExplodingTopics

4. By 2025, as many as 97 million people will work in the AI space.

5. The US AI market is forecast to reach $299.64 billion by 2026. ExplodingTopics

6. 77% of the devices we use already use features of AI in form or other. (TechJury)

7. The AI market is expanding at a CAGR of 38.1% between 2022 to 2030. (GrandViewResearch)

8. 48% of businesses use some form of AI to utilize big data effectively. (ExplodingTopics)

9. Netflix makes $1 billion annually from automated personalized recommendations. (Business Insider)

10. 38% of medical providers use computers as part of their diagnosis. (ExplodingTopics)

Ecommerce Startup Statistics

1. OfBusiness, an online e-commerce platform for raw materials, was one of the most valued Indian unicorns as of July 2022. In contrast, Cars24 had a valuation of 3.3 billion U.S. dollars during the same year. (Statista)

2. Global Ecommerce is expected to cross $5.7 trillion by 2023. (Shopify Plus)

3. As per prediction, eCommerce sales will value at $7.39 trillion globally by 2025. (Similarweb.com)

4. By 2025, sales through social media are expected to reach $1.2 trillion. (Economic Times)

5. In 2021, Amazon sold 13.5 billion units. (Similarweb.com)

6. In 2021, approximately 70% of online shoppers read between one and six customer reviews before deciding to make a purchase. (Statista)

7. 95% of online consumers made a purchase after reading reviews. (Global News Wire)

8. Social media commerce sales worldwide totaled approximately $475 billion in revenue in 2020.

9. The Global Cross Border B2C Revenue IS expected to reach around $3042.2 million in 2028. (Global News Wire)

EdTech Startup Statistics

1. Over 4,450 edtech startups in India are catering to over 300 million school students. (livemint)

2. In 2019, BYJU’s declared the highest revenue among Indian EdTech startups with a value of 193.35 million U.S. dollars. (Statista)

3. EdTech usage in K-12 schools has increased 99% since 2020. (Technavio)

4. The value of augmented reality (AR) EdTech market is expected to be $5.3 billion by 2023. (Exploding Topics)

5. Over 70% of colleges expect to launch one or more online undergraduate programs in the next three years. (Exploding Topics)

FinTech Startup Statistics

1. The market size of the Indian FinTech industry is $50 Bn in 2021 and is estimated at ~$150 Bn by 2025. (Invest India)

2. As of November 2021, there were 10,755 fintech (financial technology) startups in the Americans, making it the region with the most fintech startups globally. In comparison, there were 9,323 such startups in the EMEA region (Europe, the Middle East, and Africa) and 6,268 in the Asia Pacific region. (Statista)

3. The Fintech sector in India has seen a funding of $8.53 Bn (in 278 deals) in FY22. (Invest India)

4. Between Q1 of 2022 and Q4 of 2021, Shopify’s stock share price rose 214%. (Yahoo Finance)

5. By 2026, 2 out of 3 transactions (by value) will be digital. (Invest India)

Food and Beverages Startup Statistics

1. The Food & Beverages segment is set to grow at a three-year CAGR of 29%. (Inc42)

2. Here are some interesting numbers to look for:  (Statista)

a. The Food & Beverages industry is expected to become a $35 Bn market opportunity by the year 2025. 

b. Indian Food & Beverages startups raised more than $600 Mn between 2014 and 2022. 

c. Licious raised the most funds in the food and beverage direct-to-consumer (D2C) startup in India, with 360 million U.S. dollars. 

d. Revenue in the Food market amounts to US$866.70bn in 2022. 

3. The Indian food processing industry accounts for 32% of the country’s total food market. (Entrepreneur India)

Health Care Startup Statistics

1. In 2021, the Indian health tech startup ecosystem received a total of 2.2 billion U.S. dollars in investment. (Statista)

2. FICCI predicts that e-pharmacies will cater to 70 million Indian households by 2025. (Financial Express)

3. In the Health Care segment, the number of users is expected to amount to 1,567.3m users by 2027. (Statista)

Blockchain Startup Statistics

1. From 2022 to 2030, the worldwide blockchain technology industry is predicted to grow at an 85.9% CAGR.  (Demand Sage)

2. 30% of banks’ Infrastructure costs can be reduced by Blockchain. (Techjury)

3. By 2026, the worldwide blockchain market will be worth $67.4 billion. (Demand Sage)

4. The financial services segment dominated the Blockchain Technology market and accounted for more than 38.0% share of the global revenue in 2021. (Grand Research View)

5. There are over 170 million blockchain wallets worldwide (Blockchain.com users + Coinbase users) (Demand Sage)

IoT Startup Statistics

1. Over 10% of VC funding is IoT-related. (Exploding Topics)

2. The video entertainment category sees more spending than all other IoT categories combined. (Statista)

3. The IoT industry is expected to be worth over $1 trillion by 2024. (Exploding Topics)

4. The single largest IoT revenue segment in 2022 was consumer media and internet devices ($101.8 billion).

5. Here were the largest IoT segments by revenue in 2022: (Tech Business News)

a. Consumer media and internet devices – $101.8 billion

b. Connected vehicles – $73.8 billion

c. Payment terminals – $39.4 billion

d. Asset tracking and monitoring – $17.2 billion

e. Inventory management and monitoring – $11.3 billion

Software and SaaS Startup Statistics

1. The SaaS industry is worth approximately $172 billion. (Exploding Topics) 

2. Zoom increased market revenue by 5x between 2018 and 2020 (Statista)

3. India’s SaaS industry has grown by almost 75% in two years. (Exploding Topics)

4. The fastest-growing segment in the IT security market is Cloud Security. (Gartner)

5. Adobe constitutes a SaaS market capital of over $170 billion (Mike Sonders)

Conclusion

These were 80+ stats related to startups. The most valuable thing you can do is to analyze your industry trends (industry in which you are working or want to work), learn from them and make wise decisions. 

The number one reason for a startup failure is Marketing. To help you learn about it more and help you implement the right marketing strategies, here is our another blog which you can read.

Signing off. 

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