5 Mind Blowing Facts About Startups
Running a successful startup business requires a clear strategic plan with a clear story behind the idea. Startups that have been extremely successful have mastered the skill of developing a solid business model, thoroughly researching the industry, assembling the right team, and efficiently mobilizing the capital required to take their company to the next level. Here’s a list of 5 mind blowing facts about startups you might have missed:
Most startup founders don’t stay on as CEOs
Despite the fact that their idea or invention may be driving the business, founders are unlikely to lead the companies they‘ve created. This is due to factors such as a lack of managerial skills, or being outmatched by other aggressive shareholders through hostile stock ownership. In fact, during the third round of investment, over 52% of startup CEOs are moved from their positions.
Most people think startups are only about tech
Most people mistakenly assume that the term "startup" refers to technological firms. This is due to the emergence of companies such as Facebook, Google, Airbnb, and Uber, which generated a misleading connotation of what a startup actually means, since most people began to connect it with technology.
There are 3 new startups every second
3 new startups launch globally every second, making up for 10,800 per hour, or 259,200 per day!
Startups get investments from surprising places
Where once startups had to rely on banks and investment companies, they now have access to a wide range of financing options, ranging from angel funds and crowdsourcing. In fact, in 2010, angel investors invested $20.1 billion in 61,900 ventures, resulting in 370,000 job opportunities, or about half of all jobs generated in the private sector that year.
Machine Learning startups are getting more love
Artificial intelligence is a game-changing technology that will transform practically every industry. AI has become a favorite field for most tech aficionados, with applications ranging from internet screening of extremist content to facilitating workplace and home automation. AI startups are favored by Venture capitalists due to their promising potential to provide a high return on investment in the future.
In general, launching a startup takes time, commitment, and a large capital to launch, and unfortunately many fail to make it that far. If you're a business owner, perhaps those insights will enlighten you and help your startup succeed!
