Startups Success and Failure Rate – Statistics and Trends

06 Feb 2017

Did you know that 74% of high growth internet startups fail due to premature scaling and 29% of startups run out of cash before they’re able to get fully established. Startups that scale properly  grow  about  20  times  faster  than  startups  that scale prematurely. 75% of startups that are funded by venture capital are never able to show investors a return on their money. Check out our new infographic on Startups success and failure rate for latest statistics and trends.

Startups success and failure rate

Infographic by GO Globe Website design Bahrain

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Estimated Startup Failure Rate by Number of Years

Year %age of Overall Startups Failed
1 21%
2 34%
3 42%
4 47%
5 52%
6 55%
7 58%
8 60%
9 64%
10 67%

 

74% of high growth internet startups fail due to premature scaling.

Startups  that  scale  properly  grow  about  20  times  faster  than  startups  that scale prematurely.

80% of startups are self-funded whereas only 1% of funding for Startups comes from VC firms

29% of businesses run out of cash before they’re able to get fully established.

75% of startups that are funded by venture capital are never able to show investors a return on their money.

42% of startups identified “lack of a market need for their product” as the single biggest reason for their failure

20% of founders who have failed on their first Startup, succeed on their second

80% of successful Startups have multiple founders

Number of founders %age of successful startups
1 20%
2 47.5%
3 7.5%
More than 3 founders 25%