11 Surprising And Insightful Statistics About Startups
11 Surprising And Insightful Statistics About Startups. The rate at which a startup grows has long been a big determinant of startup success.
While growth matters, over 70% of startups fail because of premature scaling. This finding and 10 more listed below will help you make wiser decisions.GETTY
The rate at which a startup grows has long been a big determinant of startup success. While growth matters, over 70% of startups fail because of premature scaling. This finding and 10 more listed below will help you make wiser decisions based on previous failures, successes and data-backed conclusions.
1) Mentored startups grow 3.5x faster and raise 7x more money.
Entrepreneurs are constantly pulled in many directions. Business success can be amplified with the support of the right mentor who, above all, helps the founder focus and invest time wisely. The experience and connections of the mentor provide entrepreneurs with a roadmap with a higher probability of success.
2) Over 70% of startup founders eventually realize that their intellectual property is not a competitive advantage. Entrepreneurs often start with an idea they strongly believe is unique and innovative. Most founders quickly realize that the idea, product or process alone, even if legally protected, is not valuable without execution.
3) Technical co-founders are critical to enterprise focused startups but not as important for consumer products. Teams with a technical co-founder perform 230% better in enterprise companies since products that serve enterprises require a higher level of technical performance. Not having a technical co-founder shouldn’t stop you from capturing a business opportunity as long as you are working with a committed technical lead like a CTO.
4) Startups founded by non-technical teams outperform technical founders of consumer companies. They perform 31% better.
5) Founders need 2 to 3x longer than they expect to validate a business model. Validating an idea takes time and requires listening and intuition. Just like an intellectual property does not necessarily differentiate a startup from the competition, ideas, even if they seem unique, require several rounds of customer interviews and product iterations before they become products people love, use and recommend.
