How Many Startups Fail Every Year?

What percentage of startups fail after Series A?

When your product has successfully fit the market (product-market fit) and, by extension, your clients, and you have acquired a solid and competent team, it’s time to seek your first funds known as Series A. Series A funds refer to the money for the growth and establishment of your startup’s operational processes that you found out during product-market fit.

What percentage of businesses fail in the first five years?

It is commonly stated that more than half of all startups fail within the first year. However, this is not always true, according to statistics. The U.S. Bureau of Labor Statistics found that about 20% of new startups experience failure during the first two years of operation, 45% within the initial five years, and 65% within the initial ten years. This means that only 25% survive for 15 years or longer.

Do unicorn startups fail?

A unicorn refers to a startup valued at over $1 billion. Coined by Aileen Lee (a venture investor) in 2013, the term ‘Unicorn’ (so named due to their rarity) defines the few cases of such successful companies.

What is the success rate of startups?

Presently, there are 31.7 million small businesses in the United States of America, accounting for 99.9% of all businesses in the country. Many small businesses are established monthly, yet the failure rate is high.

How many startups are profitable?

In reality, only 40% of startups become profitable. Startups take between two to four years to get profitable. During this time, they operate at losses until they break even, and about 30% just do that. However, here are some facts about growth and profit:

How to Create a Startup Growth Strategy That’s Built for Sustained Success?

If you want to be a long-term success as an entrepreneur, you must have a growth strategy. The dream is to ensure your business is booming for as long as possible, not just for the first few years. The route to success is dependent on changing strategies.

Know What You Offer

As an entrepreneur, you must be familiar with your industry. You must also understand what distinguishes you from your competition. If you can perfectly outline this, your startup will be on the path to long-term growth.

Monitor your competitors closely.

Actually, it does not matter what industry you are in; there is always a competitor succeeding at something you are failing. When developing your growth strategy, consider similar firms that are expanding daily. Scrutinize their growth strategy and learn from it.

Determine Your Target Audience

Knowing who you’re selling your idea to makes pitching go much more smoothly and reduces the possibility of making mistakes. When you can recognize your target audience, you will undoubtedly make better decisions about creating and improving your service or product. When you’ve identified your target demographic, you’ll be able to generate more precise and more targeted marketing.

Establish Relevant Key Performance Indicators (KPIs)

How do you track growth when your growth strategy is in play? What data will notify you of growth? This is where KPIs play a major role.


The factors described above are critical in developing a strong startup growth strategy. These measures might help to give the market a much-needed jolt. They are also instrumental when you want to be the competition.



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