In the tech-savvy generation, startups are all around from transport to food delivery. Everyone sees a bigger picture about building a startup, but do you know what goes inside those 4 walls to gain them this buzz and set an example for others who are looking to build a startup and make an impact.
We all know Uber, Google, Airbnb, Silicon Valley startups, and many more with such big brands. There are a lot of facts and fun which can leave you wondering and questioning your knowledge about entrepreneurs and startups.
We have gathered some of the most valuable, amazing 20 facts about startups in one place. So that you can get a clear view of the big picture.
Let’s begin with some of the 20 facts about startups:
1. There is a club for startups - Unicorn Club.
The unicorn term is used for startups that are worth over a billion dollars. The Unicorn Club includes established startups like Uber, SpaceX, Google, We-work, Pinterest. The major companies which are part of the Unicorn Club are from India, China, the U.S. As of June 2020, there are more than 600 unicorn companies.
2. One of the major reasons for startup failure at least 10%, is product mistiming.
Most of the startups fail because of poor research and marketing skills. A startup tends to aggressively launch a product or service without proper research, which leads to failure within a year.
3. When people fear their privacy, a new startup comes into power.
There were major questions raised on Whatsapp regarding the privacy of the users, which led Signal to make an impact on the market. During such a feud startups get an opportunity to position their brand.
4. Most startups raise from rejection like Netflix and TATA motors.
In 2000, BlockBuster rejected the Netflix partnership offer. The founder of Netflix – Mr. Hastings got laughed out of the room. Blockbuster went bankrupt in 2010 and Netflix is now a $28billion company.
Sometimes a bigger company rejects a growing innovative startup which initially becomes their competition, and the bigger brand gets knocked out of the market completely.
5. Startups provide 3 million jobs in the first year.
Startups help to create job opportunities for people. As a startup grows, they hire a team for a different role. It also helps in economic growth as it provides more employment.
6. Every second 3 new startups are invented worldwide.
Startups are invented every 3 seconds, which leads to 11,000 per hour. Among startups, 90% of startups fail within the first year.
7. It takes 5 days to start a startup in the U.S. In Brazil, some startups take 107 days.
Brazil is still considered a developing nation. There are various challenges like infrastructure, financial, taxes, technology which result in more days to set up their startup as compared to other countries.
8. 90% of people think that startups are only tech-based.
Large companies such as Uber, Google, Facebook are all tech-based startups. Thus, most people think that startups are tech-based. Many startups are not tech-based and are very popular such as We-work, Pinterest, Tinder.
9. 1 in 3 people starts with $5000 in the U.S.
58% of entrepreneurs get started with less than $25,000. Startups such as selling online, online classes, creating an app or game, such type startups can be easily started with $5000.
10. About 90% of startups fail while reaching the second year, only 30% survive till 10 years. Most startups fail mainly due to marketing and budget, which leads to a failure by the second year. Other reasons can be lack of goal, less profit, team problem, no competitor analysis, and many more.
11. People believe that working in a startup leads to a stable career.
People believe that working in a growing startup rather than working in an entry-level job in a big firm does not lead to a stable career as with the startup they also have the opportunity to grow and can learn more. Startups provide more opportunities and responsibilities, learn under a CEO as compared to a big organization.
12. Machine learning startups are the future.
Research shows that the global machine learning market was valued at around 3.39 billion in 2019. In the coming years from 2021-2027, there will be 36% growth in startups based on machine learning. Companies like Microsoft, Google, Apple are investing millions of dollars into machine learning.
13. 73 % of startups are owned by men.
Major startups are held by men due to the ‘confidence and risk-taking’ gap between men and women. Women tend to worry about job security as well as keeping their kids’ future in mind. There are still many prototypes about women as a CEO, which leads to fewer investors too.
14. Around the world, 68% of millennials prefer to start their own business as a career goal.
While the adults paint a picture about millennials as lazy or overrated, 1 in 3 millennials chooses to build their startup. Millennials prefer to work for themselves and choose to set their dress code and timings. 73% of Millennials said that their career should be based on their identity.
15. Edtech is a booming industry.
Due to the Pandemic, the education industry faced real challenges which led to a rise in startups providing different services and products. Research predicts that by 2030, most universities will shift completely to digital and will provide online courses as part of the syllabus.
16. Do you need a Bachelor’s degree for building a startup?
YES. Studies found that over 90% of entrepreneurs hold a bachelor's degree and some are even MBA graduates. People want to move forward with the image that building a startup does not need a bachelor's degree as some famous entrepreneurs like Steve Jobs, Elon Musk have shown that you do not need a degree to succeed at your startup. Academic Qualification helps to learn new skills which help boost their startup at the initial stage.
17. India is the 3rd largest country in the startup ecosystem.
21 company falls under the unicorn club with a net worth of more than 50 billion. By 2022 50 more companies from India will join the Unicorn club. India has about 1,00,000 startups of which 2-3 startups are in the market every day. Startups in India help in raising more than 50000 jobs per year.
18. 69% of startups begin their journey from home.