Did you know that 74% of high growth internet startups fail due to premature scaling and 29% of startups run out of cash before they're able to get fully established. Startups that scale properly grow about 20 times faster than startups that scale prematurely. 75% of startups that are funded by venture capital are never able to show investors a return on their money. Check out our new infographic on Startups success and failure rate for latest statistics and trends.
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Estimated Startup Failure Rate by Number of Years
| Year | %age of Overall Startups Failed |
| 1 | 21% |
| 2 | 34% |
| 3 | 42% |
| 4 | 47% |
| 5 | 52% |
| 6 | 55% |
| 7 | 58% |
| 8 | 60% |
| 9 | 64% |
| 10 | 67% |
74% of high growth internet startups fail due to premature scaling.
Startups that scale properly grow about 20 times faster than startups that scale prematurely.
80% of startups are self-funded whereas only 1% of funding for Startups comes from VC firms
29% of businesses run out of cash before they're able to get fully established.
75% of startups that are funded by venture capital are never able to show investors a return on their money.
42% of startups identified “lack of a market need for their product” as the single biggest reason for their failure
20% of founders who have failed on their first Startup, succeed on their second
80% of successful Startups have multiple founders
| Number of founders | %age of successful startups |
| 1 | 20% |
| 2 | 47.5% |
| 3 | 7.5% |
| More than 3 founders | 25% |