How many startup founders are women?
While a male-dominated scene is hardly news within the tech world, the number of female founders across the whole startup industry might surprise you. Crunchbase conducted a study that showed female founders in startups account for only 17%! While it looks like the industry has a lot of catching up to do, we’re positive that the rise of women’s coworking spaces, networks and funds will make the startup industry more accessible for female founders.
What is the average lifespan of startups?
In short, the average lifespan of startups is about 10 years, but this is taking into account every business venture that’s being attempted. The figure was developed by The Santa Fe Institute, which also takes into account that some companies undergo acquisitions just as some go bankrupt, but both result in the erasure of a company.
How many startups receive further funding after their seed round?
While seed investment is the initial goal for early-stage startups, the following rounds are those that really pick a business off the ground and secure confidence in their growth. According to CB Insights, after the seed round, only 46% of companies receive additional funding. For over half of the companies that receive seed funding, the rest of their capital relies on the company’s success…no pressure, then!
Which city are most startups based in?
Drum roll please…the majority of startups have been created in the Silicon Valley and San Francisco Bay area. While that answer likely isn’t a surprise, a study showed that the cities closely trailing Silicon Valley are New York City, Los Angeles, Boston, Tel Aviv, and London. It’s safe to say that the United States has a great ecosystem for building a healthy startup company, but there’s no telling what the future may hold. All of these cities have a diverse census filled with innovators and entrepreneurs, which opens the environment to incredible collaborations, amazing companies and killer technologies. Runway East currently has 3 locations in London and there’s no doubt we will continue to grow exponentially.
Which industry accounts for the most startups?
From coworking spaces like Runway East to cyber security companies such as CyberSmart, the world of startups is a diverse and varied industry. In a broad sense, most startups are tech related and more specifically, fintech startups have become one of the most common industries being broken into. According to Startup Nation, about a third of consumers worldwide have direct use of two fintech services. This huge necessity and use of fintech services drives many entrepreneurs to enter this niche industry with guns blazing.
What is the success rate for most startups?
Explained in a study by Ghosh, the success rate for most start ups is 25%, but this is taking into account every single company that has been created from the silliest ideas to the most ingenious. This also takes into consideration when measuring the success or failure of a company. Ghosh defined success as a company doing well enough to return cash to its investors but other’s standard of success might be higher. When these companies fail, it isn’t unusual for the VC’s that funded them to let them die quietly as to not draw attention to their investment in a failure.
How old is the average startup founder?
When we think about the founders of startup companies in our current culture climate, we tend to think about super-smart, super-young Mark Zuckerberg prototypes. The actual age of the average company founder is about 42 years old and the age of entrepreneurs that hold high growth is about 45. An MIT study showed that founders in their 20’s have a low likelihood of founding their own company and having a successful exit. While this might come as discouraging to young entrepreneurs, just think of the increased success rate as you grow older and wiser. Plus at Runway East we have plenty of thriving entrepreneurs in their 20s-30s – age is just a number!
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