Startups are also looking to work in the programming services, educational technology, and cybersecurity industries. A study by the Small Business Administration shows that startups with products for bakeries and small grocery stores have the worst financial performance.
Technology startups statistics
Research shows that 33% of tech startups are registered in the United States. The US tech start-up market is valued at $1.6 trillion. It should be noted that Western and Eastern Europe is the second-largest market in terms of the number of development and creation of startups. 55% of tech startups provide software, infrastructure, and IT tools. 26% focus on providing telecommunications solutions, while the rest of the startups provide products related, in particular, to IoT and artificial intelligence. It is worth noting that the development of technology startups has a better chance of attracting venture capital funds. Research shows that tech startups based in New York City raised $13 trillion in capital from venture capital funds in 2018. By comparison, in 2013, venture capital investments totaled only $4 trillion.
The future of startups
Based on the collected data and current trends, statistical analysts make predictions and assumptions about the behavior of startups in the future. Startup experts believe that many startup founders will move from Silicon Valley to the East Coast in the future. You can already observe this behavior, which is caused by very fierce competition in California. In addition, more and more unicorns are expected in the future, that is, startups with an estimated market value of at least one billion dollars. According to Statista, the number of unicorns in 2018 increased by as much as 353% compared to 2013. The use of the latest technologies will continue to be a characteristic feature of most startups, here you can recall the implementation of artificial intelligence solutions, programming and website development for a startup project, and outsourcing startup development. Many experts also believe that in the coming decades, the proportion of young people starting their startups immediately after graduation may increase.
There are several ways to get funding for your startup. One of them is to take out a bank loan. According to a study by the Small Business Administration, 75% of American startups finance at least some of their activities in this way. 16% of startups admit that they started their business with money borrowed from family and friends. In addition, 33% of startups have a starting capital of less than $ 5,000. Another form of startup financing is Venture Capital funds. Only 3% of American startups use venture capital funds. Venture capital funds are most commonly used by startups that require funding in excess of $ 250,000. It should be noted that the largest number of investors are received by startups offering solutions in the field of robotics, blockchain, artificial intelligence and fintech.
We hope you found the statistics interesting and useful. If you want to know more about launching startups, be sure to contact iTizzi Software Development Company.
iTizzi is a Ukrainian company specializing in software and technology solutions. Our mission is to comprehensively support companies in digital transformation using modern methods of creating digital products. iTizzi in Odesa and Dnipro provides comprehensive product development services: idea creation, prototyping, UX / UI design, app and website development, quality assurance and product management. ITizzi’s clients are companies from Vinnytsia, Lviv, Kyiv, medium-sized corporations, and leading startups.
iTizzi provides customers with flexible product groups that deliver the highest quality software. We combine experience with innovative thinking because our staff is made up of people with years of experience in corporations, startup founders, entrepreneurs, and experts. An important element is a culture of lifelong learning and a method of “agile management”.
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