How Many Startups In The US? ([2023] Stats) Important Facts

In this article we will discuss How Many Startups In The US? (2023 Stats)

How many new businesses will there be in the US in 2022?

Everyone has to start at the beginning.

This is also true for business and starting your own business.

Microsoft, Apple, Amazon, and other companies we know and love today all started out as small businesses that struggled to find customers and money for their ideas.

Look where they are now, though.

Even though startups have a high death rate, people who want to be entrepreneurs are still willing to take on the challenge and use all of their resources to get their ideas out there.

Does opening in one place make their chances of success better or worse? Let’s find out.

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How Many Startups in the US Are There 2023?

People who want to know how many startups there will be in the US in 2022 should know that there are more than 70,000 active startups in the country right now.

This high number is no surprise since the country is home to the famous Silicon Valley, which has been the best place for tech startups to grow since the 1970s.

In a similar way, the United States is known to have one of the best startup environments in the world. This is because it has policies that help startups, quick access to markets and funding, and teaches young people about business ideas from an early age.

Important Startup Statistics

I’d like to begin by giving you an overview of the most important figures associated with startups around the world before diving into the category-specific statistics.

Most unicorn startups are located in North America, followed by Asia and Europe.
It is the United States of America that has the most startups.
In the global startup market, 61% of startups provide B2B solutions, while 39% provide B2C solutions.
With a valuation of $140 billion, Bytedance is the world’s highest-valued startup.
In terms of startup ecosystems, India is ranked third in the world. Among the top 15 unicorns in the world is India’s Byju’s.
As of 2022, blockchain startups, E-commerce, artificial intelligence, and fintech companies are growing rapidly.
On average, startups take 2-3 years to make a profit.
It is estimated that 40% of startups fail because there is no market need for their product.
Startups are involved in 15.4% of the US population.
There were more seed and angel venture capital deals in the first quarter of 2021 than in the fourth quarter of 2016.
In today’s world, startups face the greatest challenge of finding a real problem to solve.
Startups today face fierce competition.

Startup Demographic Statistics

All other age categories are surpassed by startups with a core team of 25 or younger.
20% of startup starting teams include at least one woman. In 2009, the number was 10%.
Female entrepreneurs have globally raised $5 billion in venture financing.
At least one woman founds 28% of American startups.
14% of US Startups are led by women.
In China, there is a 1.5% gender disparity among founders.
In Japan, there is a 4.5% gender disparity among founders.
In Colombia, there is a 2% gender disparity among founders.
In India, just 15% of Unicorn startups are founded by women.
Five of India’s fifteen Unicorn Startups in 2022 will have a female co-founder.
In 2021, the rate of new female entrepreneurs among U.S. residents was 0.28 percent.
Google provides $5 million to black founders. The hashtag for their endeavor is #FundBlackFounders.
The average age of a founder of a startup is 45. Despite this, 40% of businesses are led by individuals under the age of 40.
With 1,127 company founders among its alumni, Stanford University is the university with the most entrepreneurs. The alphabet was also established by a few Stanford Alumni (Larry Page & Sergey Brin).

Startup America Initiative

Many people today don’t understand why so many of the most successful startups in the world are based in the United States. One thing to think about is how easy it is to get money.

In 2011, “Startup America” was launched by the White House. Former US President Barack Obama was in charge of it.

The goal of the initiative is to speed up and encourage high-growth entrepreneurship in all states so that there is long-term growth and better jobs for people.

The Small Business Administration was in charge of managing the $2 billion in funding for impact investing and seed financing for businesses in their early stages.

Startups that start in the United States have access to almost all of the secrets to success.

Apple, Facebook, and Amazon are role models in the US, which are important when developing business plans.

Living the American dream for real.

In the United States, how many startups are initiated by women?

There is also a big rise in the number of women working in startups.

Over time, more and more women have started their own companies or been one of the first people to join a new company.

Take a look at the data from Statista that shows what percentage of new businesses in the United States were started by at least one woman.

2017 – In the United States, 22% of startup companies have at least one female founder
2018 – At least one female founder was involved in 24% of all American startups
2019 – At least one woman co-founded 26 percent of all US startups in 2019
2020 – In the United States, 28 percent of all startups have at least one female co-founder

Top 10 Global Startup Ecosystems

According to Startup Genome’s Global Startup Ecosystem Report 2021, half of the places with the healthiest startup ecosystems are in the United States.

Companies were evaluated according to an organization’s nine “success factors” standards, along with market performance, connectivity, talent, expertise, funding availability, and business expertise.

Rank 1 – Silicon Valley is in the U.S. Over the last five years, the undisputed tech haven has always been at the top of the GSER.

Rank 2 – New York City, United States, and London, United Kingdom tied for second for two consecutive years

Rank 4 – Beijing, China

Rank 5 – Boston, United States

Rank 6 – Los Angeles, United States

Rank 7 – Tel Aviv, Israel

Rank 8 – Shanghai, China

Rank 9 – Tokyo, Japan

Rank 10 – Seattle, United States

Startup Genome found that 50% of the places with the healthiest and best-performing startup ecosystems are in the US.

The other 27% are from Asia, and the remaining 17% are from Europe.

Five Top-Performing US Locations and their GSER Scores

Below is a list of the top five US locations that made the list based on GSER scores.

Silicon Valley

Performance – 10/10
Funding – 10/10
Connectedness – 10/10
Market Reach – 10/10
Knowledge – 10/10
Talent – 10/10

As you can see from the information above, Silicon Valley got perfect scores everywhere.

This means that the place meets all of the requirements for a top-performing startup ecosystem.

New York City

Performance – 10/10
Funding – 10/10
Connectedness – 10/10
Market Reach – 10/10
Knowledge – 5/10
Talent – 10/10

The Knowledge Success Factor scored significantly lower in New York City than in almost every other category.

Boston

Performance – 9/10
Funding – 9/10
Connectedness – 9/10
Market Reach – 9/10
Knowledge – 5/10
Talent – 10/10

Similarly to New York City, Boston lags behind in terms of patents and research as measured by the Knowledge Success Factor.

Los Angeles

Performance – 9/10
Funding – 10/10
Connectedness – 3/10
Market Reach – 9/10
Knowledge – 7/10
Talent – 9/10

A startup’s ability to link to the global web of knowledge that is crucial to its survival needs to be improved in Los Angeles, as measured by the Connectedness Success Factor.

Seattle

Performance – 9/10
Funding – 7/10
Connectedness – 7/10
Market Reach – 8/10
Knowledge – 7/10
Talent – 8/10

Seattle did well in all of the success factors, and none of them were a lot worse than the others.

On the other hand, the ecosystem did not get a perfect score, which means there is still a lot of room for improvement.

What Does a Startup Mean?

Small businesses are where most startups get their start, but not all small businesses are startups. We often use these two terms interchangeably, but in many fields, they mean different things.

Investopedia says that a company is a “startup” if it is just getting started and is looking for outside investment to get its ideas out there.

Its goal is very different from that of a small business. The goal of a small business is to make enough money to live on, while the goal of a large business is to grow and possibly become worth a billion dollars in the long run.

Because of this, startups come up with new ideas that have never been made before.

They want to “disrupt” the industry by coming up with something new that could help solve problems that have never been thought of before.

Forbes says that a startup can become a “larger firm” when it has an annual revenue of $20 million or more and at least 80 employees.

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Conclusion: How Many Startups In The US 2023

In 2022, there are over 70,000 startups in the United States.

The country is known for providing one of the healthiest business environments in the world, with easy access to finance, supportive government laws, and the availability of a pool of knowledge-based personnel that enables new businesses to thrive and develop.

Five of the world’s top 10 startup ecosystems are located in the United States, led by Silicon Valley, which received perfect marks across the board.

This indicates that budding entrepreneurs should consider the United States as a viable company location.

Thank you for reading our post on the number of American startups in 2022.