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To be a successful startup founder, you don’t need to have an idea that is completely unique or has never been done before. In fact, many of the most successful startups are based on ideas that have been around for years or even decades.
The key is to take a familiar idea and put your own spin on it, or to combine multiple existing ideas in a new way. For example, Uber is a transportation startup that has been incredibly successful in recent years.
But the idea of using your smartphone to hail a cab is not new. What made Uber special was its use of technology to make the experience more seamless and convenient for customers.
So if you have an idea for a business, don’t be discouraged if someone has already done something similar. Just focus on what makes your idea different and why it will be appealing to customers. With the right approach, you could be the next big startup founder.
1. By industry, the global distribution of startups
5.8 for artificial intelligence and 5.0 for gaming. Today’s startups are drawn to the internet and digital technologies, even if data on industry distribution isn’t 100% accurate.
We can also determine, based on this data, which industries are currently the best fit for new businesses.
2. Where are most start-ups located in the world?
By a wide margin, the United States is the world’s most startup-friendly country. India comes in second with only 13,125 startups, followed by the United Kingdom with 6,220.
3. ByteDance, the world’s most valuable unicorn company, has a market capitalization of over $350 billion.
Tiktok is owned by a Chinese tech company called ByteDance. Over 600 unicorn companies exist in the world today. While most of them are in China or the United States,
Businesses known as unicorns have a market capitalization of $1 billion or greater. A large percentage of today’s unicorn businesses are engaged in the global sharing economy, where they stand to gain significant profit margins quickly.
4. The United States is home to approximately half of all Unicorn companies.
With a quarter of the world’s total unicorn companies, China is in second place. India and the United Kingdom alternate between third and fourth place regularly, with about 5 percent of unicorns, or about 20 companies, in each country.
As a comparison, the number of startups in the US is nearly three times greater than the combined number of startups in the following nine countries. “(Crunchbase)”
5. There is an estimated $3.5 trillion in global eCommerce sales, and this figure is expected to grow rapidly in the future.
As a result, eCommerce is a popular choice for new businesses. Fintech – financial technology – is the next industry in line to be revolutionized by the Internet.
As a result of the implementation of PSD2, the online financial services industry has grown rapidly. Cybersecurity is another major concern for new businesses.
When it comes to the future, they know that online security will be crucial. Another well-liked startup industry is FoodTech, which brings together food and technology, particularly the internet, to deliver products to customers.
An estimated $16 billion was spent on educational technology startups in 2018 alone, making it one of the fastest-growing startup industries.
7. Bytedance (Toutiao) from China is the most valuable private startup in the world, with a value of $75 billion.
It’s a startup that’s partly owned by the government, even though it’s the undisputed market leader. Didi Chuxing, a Chinese ride-hailing company worth $56 billion, is the second most valuable startup in the world.
The third-placed US Fintech company is valued at $36 billion, while SpaceX is valued at $33.3 billion.
8. 95% of entrepreneurs who start new businesses have a bachelor’s degree or higher.
There are many people who believe that education isn’t necessary. They cite Elon Musk and Mark Zuckerberg as examples. A college degree isn’t required for many of the world’s most successful startups.
Serious Startups has a list of startups that are serious about their business.
Almost seven out of ten new businesses are started from the comfort of one’s own home.
There must be a beginning and an end to an idea. Most startups don’t have the money to pay for an office at the start. However, they can still run their business from their own homes.
More than half of U.S. business owners report that they continue to work from home after starting their companies, proving that this option isn’t just attractive in the beginning stages of a business.
9. What percentage of newly formed companies go on to fail?
To get a sense of how many new businesses fail, take a look at the following honest statistics about startup businesses:
Lack of a product for a target market is the primary cause of these figures. There are a lot of businesses that can’t seem to get their products or services noticed.
Marketing is another area where some businesses have difficulty. Because of their lack of resources, they are unable to properly market their products and services.
Poor team organization is another reason for startup failure. Companies are unable to form a cohesive team that can accomplish their goals.
10. When it comes to starting a business, 58 percent of startups have less than $25,000 at their disposal.
Figures like this one show how many startups struggle to raise money. Financial resources are required for businesses to expand, develop new products, and promote their offerings to potential customers. This is a major factor in the failure of so many new businesses.
While this is the case, only 33% of new employer businesses have a capitalization of $10,000 or less. It’s critical to start a business properly and with the appropriate amount of funding because money is a major concern.
Only 40% of new businesses succeed in turning a profit.
Not all startups fail due to a lack of funds, as evidenced by this figure. Starting a business involves a slew of challenges, including legal ones, logistical ones, and ones related to management.
For a startup to be successful, all of these potential issues must be taken into account. As a general rule, 30 percent of startups are more likely to lose money, while the other 30 percent will lose money from the start.
11. Most startups fail because they misinterpret current market demand (42%).
There is 29 percent of startups fail due to a lack of funding. Other major reasons for closure include a lack of team cohesion (23%), being displaced by the competition (19%), and running into financial difficulties (18 percent ).
12. In the early stages of a company’s existence, many entrepreneurs find it difficult to stay ahead of the competition.
Cash flow (12%), taxes (11%), the economy (11%), and growth (10%) round out the top five most difficult challenges. Other startups have to deal with a wide range of difficulties. The most difficult part of starting a business.
13. The vast majority of small business start-ups have a maximum of $10,000 available to them during the early stages of their operation.
If you’re starting a small business, you’ll need that many people. However, the costs can vary greatly depending on the business model, future investments, and development. Generally speaking, it’s a good rule of thumb, but it won’t work for every company.
14. Personal savings were used by 15.3 % of startups in the development process.
Finding an investor isn’t always easy, and the majority of startups need to self-fund to grow. Investors aren’t always willing to take the risk at the outset. They want to see a startup make a profit and become a legitimate business before they invest any money in it.
Your checking, savings, and retirement accounts are your best bets for financial security. You have to have faith in your business idea enough to risk your own money on it to make it a reality.
15. For the vast majority of businesses, a yearly revenue of at least $50,000 is necessary to ensure their viability over the long term.
The process of generating revenue is a lengthy one. It can take up to two years for most businesses to start making money, so finding investors is a top priority for startups.
Financing can be obtained from a variety of sources: personal and business loans and microloans; bank loans and investment funds; crowdfunding; and angel and venture capitalists.
16. There was an 11.2 percent CAGR in seed valuations, a 15% increase in Series B, and a 16% increase in Series A valuations between 2010 and 2018.
To put it another way, investors are placing a higher value on startups, and as a result, the startup market is becoming increasingly serious. To entice investors, entrepreneurs are taking the necessary steps to demonstrate that they mean business.
17. 58% of Micro Venture Capital funds in the market are based in the United States.
Since the vast majority of startups are based in North America, this statistic makes sense. Micro Venture Capital Funds from Asia, Europe, and the rest of the world account for a total of 19 percent. Non-Micro Venture Capital Funds have a similar split, with Asia accounting for 22% of the total.
18. There are typically three rounds of financing before a company reaches Series A status.
Instead of two rounds of funding, most startups now need three rounds of funding before they can move into the Series A phase.
This just proves that businesses are having a hard time obtaining the capital they need to expand. At the same time, the owner loses a piece of their business with each new investment.
29. Venture capital funding is only obtained by a very small percentage of new businesses (0.05 percent).
Some of the most dependable investors contribute to venture capital. Funding or managerial and technical help are two common forms. Only companies with the potential for long-term growth are eligible for this type of investment.
This suggests that venture capitalists are reluctant to invest in most startups because they lack confidence in their ability to succeed.
However, if you invest in the right start-up, you can see excellent returns on your money.
20. Only one in a hundred seed-funded startups achieved a $1 billion valuation.
1.07 percent of seed-stage startups become unicorns. Even if that sounds like a lot, raising seed rounds is difficult enough as it is. Instead of trying to emulate the mythic status of some of the most hyped startups in history, companies should focus on improving their services and products for the market.
21. Twenty-two. SaaS companies spend 80–120 percent of their total sales revenue on marketing during the first three years of their existence
They start cutting back on marketing spend after the first three years and by the fifth year have reduced it by up to 50%.
The ratio doesn’t change much after the fifth year. Even though SaaS companies and their revenue levels vary widely, these ratios hold across the board.
You can read more about Tomasz Tunguz and his work at Tomasz Tunguz.com
22. More than half of companies (52%) expect their next source of funding to be Venture capital in 2019.
Since 2017, when 51% of companies expected this to be their funding source, and in 2018 when 54% of companies relied on Venture capital, this trend has remained fairly steady.
With 13% of companies relying on it in 2017, 19% in 2018, and 17% in 2019, Angel or Micro Venture capital is the next most popular funding option.
Startups are looking for what kind of funding in the future.
23. More than half of the company’s leaders said that acquisitions were the most likely long-term strategy.
Some 18 percent of the startups were preparing for a potential IPO, 17 percent were hoping to remain private, and 15 percent of companies had no long-term goal.
Even in 2018, 57 percent of companies expected to be acquired, 18 percent hoped for intellectual property (IP), 16 percent remained private businesses, and 9 percent had no long-term plans.
24. With an average of $66.3 million raised per round in 2018, eCommerce startups had a successful year financially in 2018.
From 2014 to 2018, eCommerce startups saw a 55% increase in the amount of investment they received per round. Not all startups are having a hard time getting funding, as this statistic demonstrates.
25. On July 12th, 2019, a total of $6.24 billion was invested in cybersecurity startups.
Investments in July nearly equaled the total for the entire year. The total amount invested in 2018 was $7 billion. It is expected that this investment trend in cybersecurity startups will continue through 2021.
There is a growing demand for cybersecurity services from large corporations because they are dealing with a wide range of issues in this area of their business.
25. In 2015, the United States invested $1 billion in food technology venture capital firms.
Despite the lack of current data, this upward trend in investments has been going on for quite some time. Think about 2008 and 2013, when this industry received $60 million in total investment, compared to $290 million in 2013. This sector is expanding at a steady rate.
27. There were over 138 venture capital deals in 2016 that raised $1.03 billion for tech companies.
The majority of the $593 million in funding went to startups with a specific focus on the secondary education market or corporate learning. There has been no significant growth in the North American e-learning market between 2013 and 2016.
28. Almost $254 billion was invested in Fintech startups in 2018.
Over 18,000 start-ups received investment deals in the first quarter of this year. This represents a 40% increase in investment for just one year. Investing in the UK increased by $3.6 billion in just one year, from $4.9 billion in 2018 to $4.9 billion in 2019.
29. The biotech industry has a market capitalization of approximately $295 billion. The development of DNA analysis technologies is expected to lead to further growth in 2021.
It used to be that only ancestry could be discovered through DNA testing, but that is no longer the case. Companies are working on DNA-based technologies that can help people improve their health, recommend exercises, and more.
30. In 2019, an average of $48 million was invested in African tech startups.
A growing number of venture capital firms are making investments in Africa. It is safe to say that the investment level has increased by almost 100% in the last few years, with each startup receiving an average of $25.3 million in 2015.
However, only about 20% of those companies have been founded by local people.
31. Towards the end of 2024, the global market for Green Technology and Sustainability is expected to grow to $29.9 billion.
During the period from 2019 to 2024, the CAGR is expected to be 27.1 percent. The Blockchain industry is expected to see the most growth in technology. Carbon footprint management is expected to see the most growth in terms of application.
32. In 2018, the number of people looking for no-code startups increased by 100%.
Interest in no-code startups has been steadily rising since 2018. A digital product that can be customized to meet the specific requirements of a company is in high demand.
However, they no longer have the time or interest in coding these products. As a result, they are looking for websites and apps that they can customize without any coding knowledge at all. In the future, this is likely to be a trend that continues.
33. The market for the sharing economy is expected to generate $335 billion in sales revenue by 2025.
Sharing economy startups like Airbnb and Uber have exploded in popularity in just a few years and now have a global footprint. Airbnb is currently valued at $24 billion, while Uber is worth over $50 billion.
The total market sales revenue in 2013 was $15 billion, which means that the market’s projected revenue is expected to grow by more than 20 times in just seven years.
34. AI is currently the most promising innovation technology, according to 60% of entrepreneurs.
Furthermore, they believe it will be the most promising technology in 10 years. Autonomous transportation and big data are the areas with the greatest potential for this technology. Despite this, it is expected that these two areas will grow significantly shortly.
Because we want you to be successful in your entrepreneurial endeavors, we’ve provided this data and information on startup trends. For many years to come, the startup industry will be the driving force behind global innovation and business growth.
However, for more start-ups to make it in the long run, businesses must learn how to adapt to changing trends while remaining viable and efficient.