Friday, 18 July 2025
28.2 C
Singapore
30.8 C
Thailand
21.4 C
Indonesia
27.3 C
Philippines

These 8 Facts About Startups Will Blow Your Mind

The startup industry is a huge part of the world’s economy, and more so than most people realize. Startups account for thousands of new jobs, millions in economic development, and even help to make up for jobs lost through automation and other traditional job losses. While many businesses fail, those that succeed and go on […]

The startup industry is a huge part of the world’s economy, and more so than most people realize. Startups account for thousands of new jobs, millions in economic development, and even help to make up for jobs lost through automation and other traditional job losses. While many businesses fail, those that succeed and go on to become full-fledged businesses often make a splash and disrupt the industry. For example, HelloFresh was founded in 2011 and now has a net worth of over 2 billion and food deliveries in 10 countries. For this article, we will be defining startups as the broad category of businesses in the early stages of launch, rather than the more specific term referring to tech space businesses.

Commerce has always been reliant on innovation, new businesses have always driven job growth, and entrepreneurship is at the heart of the American dream. If you are thinking about starting your own business, or if you already have, these 8 facts about startups might be useful to you. If you are just curious, they might still blow your mind.

Fact #1. Fail, Fail and Fail – 90% Of Them Fail

90% Fail

A study by CBI Insights showed that 9 out of 10 new startups fail, mostly because they have not done market research before they launch their product or service. In fact, 42% in a poll listed the reason for failure as no market demand for their business. Others listed self-destruction in the form of mediocre or subpar management. And, 72% found that their intellectual property was not a competitive advantage after they started operating as a business. Most startups also need between 2 and 3 times longer to validate their market than most founders expect. If you are thinking of starting a business, you can combat this issue by spending extra time on market research and validation. Even seeking out mentors through business seed programs, learning how to track performance metrics, and learning about growth in advance can help you to see as much as 3.5x the growth.

Fact #2. There Are Three New Startups Every Second

3 new startups launch globally every second, making up for 11,000 per hour, or 25,9200 per day! In the U.S. alone, that number is much lower and usually averages at 3 per minute.

Fact #3. Startups get Investments from Surprising Places

Kickstarter

Where once startups had to rely on banks and investment firms, they can now turn to a wide variety of investment opportunities ranging from angel funds to crowdfunding. In fact, Kickstarter has funded over 115,000 projects since its launch, and angel investors are responsible for raising billions in funds every year. How much? Angel investors raised $20.1 billion in capital in 2010 for 61,900 ventures, resulting in 370,000 jobs, or almost half of the private sector jobs created that year. Despite that, only an average of 10-15% of ventures that actually get funding.

Fact #4. Entrepreneurs Start Out Working for Other People

The Harvard Business Review showed that approximately 70% of investors started out by incubating their business ideas while working at a traditional job. The data revealed that many entrepreneurs started their own business in order to get away from bad leadership, but most often took the time to thoroughly plan out and create a business plan to gain funding before quitting their day job.

Fact #5. Most Aren’t That Concerned with Equity Splits

Dividing up money seems like it would be a big deal, but 80% of startup founders spent less than an hour negotiating their equity split according to Noam Wasserman, author of “The Founder’s Dilemma.”

Fact #6. Most Founders Don’t Stay On as CEO

While many founders start their business with the idea of retaining their role as CEO, many quite simply do not have the skills to do so. As a result, some 52% of startup CEOs were removed from their role by the third round of company funding. Despite that, CEOs who can handle the needs of their business, and pass tasks that they cannot perform onto a capable employee to retain their position.

Fact #7. Information Companies Are Most Likely to Fail

The Statistics Brain Research Institute compiled statistics on startup failure by industry, and information companies come in at the bottom. In fact, on average, only 37% of information companies are still operating after four years. Conversely, real estate, finance, and insurance are the most likely to remain in business, with 58% still running after four years.

Fact #8. Startups with Teams Succeed

Startup Team

Startups with 2 or more founders, a balanced team, or who hire skilled employees to distribute work are more likely to succeed. In fact, single founders take 3.6x longer to reach scale compared to a founding team of two. Balanced teams also raise 30% more money and have an average of 2.9x more growth.

In a Nut Shell

Launching a startup requires time, dedication, and a lot of capital, and unfortunately, many businesses do not make it that far. If you are a business owner, perhaps you can learn something from these facts to help your startup succeed.

Hot this week

Singapore shoppers embrace cross-border eCommerce, prioritise trust and clarity at checkout

Singaporean shoppers lead cross-border eCommerce adoption, with a focus on transparent fees, payment security, and fast checkout experiences.

Southeast Asia’s enterprise AI evolution enters a new phase

To mark AI Appreciation Day 2025, we gathered insights from senior technology leaders across Southeast Asia to explore how enterprises are scaling AI responsibly and strategically.

Vivo joins the foldable race with new X Fold5 featuring ZEISS cameras and a huge battery

The Vivo X Fold5 offers foldable power with ZEISS cameras, a 6,000mAh battery, and multitasking software, all in a slim and lightweight design.

Google’s AI notebooks now help you explore topics like parenting, Shakespeare and more

Google’s AI notebooks now let you explore expert topics like parenting, Shakespeare, and ageing with curated content and audio overviews.

Microsoft will stop new Office 365 features on Windows 10 in 2026

Microsoft will stop new Microsoft 365 features for Windows 10 users starting August 2026, with full support ending by early 2027.

Grok chatbot now barred from referencing Elon Musk or calling itself Hitler, says xAI

Grok chatbot no longer allowed to reference Elon Musk or call itself Hitler, as xAI enforces new rules to stop offensive replies.

Tenable uncovers remote code execution flaw in Oracle Cloud Code Editor

Tenable discovered an RCE flaw in Oracle Cloud Code Editor that allowed attackers to exploit Cloud Shell; the issue has since been fixed.

Garmin introduces Descent S1 buoy to enhance dive communication and safety

Garmin launches the Descent S1 Buoy in Singapore to improve diver tracking, messaging and safety through advanced sonar technology.

Salesforce expands Hyperforce services in Indonesia with local data residency

Salesforce brings local data residency and AI-driven services to Indonesia with the expansion of Hyperforce and new platform tools.

Related Articles

Popular Categories