Important Business Intelligence Stats For Startups in 2022

A startup is a company that is founded and established by one or more entrepreneurs. Startups are fuelled by innovation and a passion to make a difference in the world. Startups can be of various types – eCommerce business, AI, fintech, edtech, etc. 

Today, the top 3 countries in the world with the most number of startups are the USA, India, and the UK. There are a total of 71,153 startups in the USA followed by India which has 13,125 startups and the UK with 6,220 startups. 

Like in any other situation, the success of a startup also depends on the analysis and monitoring of crucial factors. It is important to know what brings out noticeable results and what aspects of your business you need to measure so that you can precisely calculate your growth. 

Business intelligence just like product intelligence refers to business analytics, data mining, visualization, and technologies and strategies used by enterprises to analyze and manage all the information of a business. 

So, here we have compiled an array of business intelligence statistics that are important for entrepreneurs and startups of all sizes to know.

Business intelligence stats for startups in 2022:

1. Only 40% of all startups become profitable overall.

2. Businesses with employees that survive past the first five years – 50%

3. Of all the unicorn companies in the world, 50% are in the USA.

4. As much as everyone loves to talk about how a college degree is not important in the face of business acumen, 95% of entrepreneurs who have founded their startups have a minimum of a bachelor’s degree.

5. The world’s highest-valued unicorn is the ANT group which is valued at $125 billion.

Startup success and failure rates:

1. The highest five-year survival rate for new businesses is mining, at 51.3%.

2. If you have experience with owning a business, then there is a 30% chance that your next business will be successful.  

3. The first five years are very crucial to the success and trajectory of a company as 50% of startups shut their doors within the first five years. 

4. After the first checkpoint of 5 years, the next important checkpoint is after 10 years as 70% of startups are said to dissolve within 10 years.

5. Percentage of startups that fail within the first year itself  – 10%.

6. Failure for startups is usually noted during the second year through to the fifth year, with 70% of startups falling under this category.

7. There is a myriad of reasons for which startups can fail. However, 14% of startups fail because they don’t give due weightage and importance to customers’ needs. Another reason for failure for most startups is not assessing current market demand and conditions correctly which makes up about 42% of startups. 

8. The failure rates of all startups amount to the same, no matter the industry or niche.

Investment and financial statistics:

1. Percentage of startups in the UK, Canada, and the US that had venture capital as their primary funding source – 42%

2. The COVID-19 pandemic was responsible for a 40% decline in the revenue of companies. 

3. Most small business startups have a maximum of $10,000 at their disposal during the startup period.

4. In order for startups to be able to sustain themselves in the long run, startups need a minimum of $50k in annual revenue.

5. SaaS companies invest up to 120% of their whole sales revenue in marketing in the first 3 years of operation. 

6. The long-term goal for 50% of company owners is acquisition. 

7. The number of rounds that most companies have to go through before turning into Series A is 3. 

8. When it comes to small businesses, 1 in 3 of them begin with an investment under $5,000.

9. There are various types of methods for small business financing – personal funds (77%), online lenders (4%), bank loans (34%), angel investors (3%), venture capital (3%), crowdfunding (2%). 

You can refer to more detailed revenue measures for Amazon here at Amazon statistics.

Technology startup stats:

1. An average of 20 tech companies are started each year generating a revenue of $100 million.

2. The global tech industry is expected to exceed $5.3 trillion in revenue in 2022.

3. According to 60% of entrepreneurs, AI is believed to have the best prospects currently as well as in the foreseeable future. 

4. While assessing by volume of investment, AI is one of the fastest-growing industries (16%). 

5. Tech startups offer higher pay of an average of $102,000 which is twice the current US average of $48,000.

Miscellaneous stats:

1. The crucial factors that influence the funding of your business are what time of the year you make your pitch, how detailed your company data is, and your pitch deck’s value. 

2. The number of days it takes to start a business in the US is 6 days. 

3. More than half (69%) of start-up companies begin as home businesses.

4. When it comes to initial funds, 77% of startups rely on personal savings. 

5. Percentage of startups that have at least one executive position occupied by a woman – 53%

These statistics have been compiled from various sources with a view to helping startup founders gain more insights. 

Author’s Bio:

Arishekar N is the Senior Director of Marketing and Growth at SellerApp, an e-commerce data analytics solution. He is responsible for overseeing the development and implementation of marketing strategies, as well as increasing process efficiency by executing cutting-edge Search Engine Optimization strategies at SellerApp

Arishekar has over 10 year of experience in marketing analytics and SEO. He has worked as a Digital Specialist for the tech giant IBM and most recently as the Senior Marketing Specialist for ZioTive Technologies where he enhanced their site structure by increasing website and mobile usability. Previously, he worked as a Senior SEO Analyst for Star Group where he was responsible for managing SEO Audits and analytics.