The statistics, information and data surrounding startup success are pretty daunting. In fact, around 530,000 new businesses have been launched in the USA so far in 2015. But only a handful of these startups will be able to achieve a fraction of the popularity and fame that some of the world’s most celebrated brands command.
A recent interactive infographic released by Designhill, one of the fastest growing custom design crowdsourcing marketplaces, provides some detailed overview on vital factors influencing startup growth and success. Titled as “Factors that Influence Startup Success”, this infographic reveals loads on vital information and data on startup success statistics.
1 # Age
In the world of tech and startups, there have been highly contentious opinions on the age of founders and the impact that their age has on their ability to succeed. Questions such as; what is the average age of a startup founder, what is the optimal age to be a founder and founders of what age get the highest funding, are all often asked.
The infographic reveals that average founding team for most startups launched in 2015 is aged between 35 and 54. And companies with founders aged between 35 and 44 were the ones that received highest median funding. Of these 569102 new businesses launched in the USA, over 39% founders were previously CEOs as against 10% who were previously directors.
2 # Location
Location and demography is another data point that can be added to the list above for analysis and discussion. In a blog published on Forbes, writer Tom Post suggests first time entrepreneurs looking for a startup community to launch your business to research the locations where other successful startups have planted their seeds. An analysis of where to launch new business helps first time flock to cities that provide community engagement and access to essential resources. And to help aspiring entrepreneurs choose the perfect city to kick-off their dream ventures, the infographic reveals a list of best cities to start a new business in 2015.
Here’s the rundown of top U.S. metro regions that have highest ratio of tech startups compared to the national average. Here’s the rundown.
Austin, Texas
Miami, Florida
San Jose, California
Los Angeles, California
Denver CO
3 # Funding
The investor ecosystem seems to be hell bent on shaping up 2015 as the strongest year for early age startup funding. Coming out of the third quarter of the year, the average funding per company in the year 2015 is $1.5 million and the average value of an YC-funded startup in the year 2015 so far is $ 18.2 billion, according to Mattermark Startup Funding Report for Quarter 1, 2015.
In Q3 2015, 27.3 internet startups received investor support followed by Healthcare startups with 26.5% investor backing. 14.1% mobile and telecom startups also made it to the favorite lists of investors. Kauffman Startup Activity Report 2015 reveals that American cities of San Jose, San Antonio, Denver, San Francisco and New York ranked high in terms of angel investment deals distributed across different industries (dollars) in 2015.
4 # Growth
Remember the story of Napster? This highly ambitious venture failed to success even after getting $33.5 million funding. Well, Napster is not the only startup that failed to succeed, there’re plenty of other examples. According to an interactive infographic by Designhill, 93% of startups that scale prematurely never break the $100k/month revenue threshold. And 74% of high-growth startups fail due to premature scaling.
These are just some of the many factors that spell the difference between success and failure for most startups. The infographic by Designhill presents very detailed analysis of each factor and identified the state of startups in the year 2015. Studying these factors can help startups realize their own ‘startup-identity’, the common pitfalls such categories face and the most common path to success.
