20+ Startup Statistics [2024]

Welcome to a comprehensive overview of the latest trends and insights in the startup landscape. 

Startups get the lowest VC finding in years

The total amount of venture funding received by startups worldwide has shrinked to $21 billion in Q3 2023, which is less than a half of the money startups raised in Q4 2022 ($49 billion).

AI and healthcare startups get the highest finding

Artificial intelligence (AI) and healthcare startups tend to secure the most substantial funding, each receiving nearly $5 billion in investments in March 2023 alone. For example, Google significantly increased its investment in Anthropic, a competitor of OpenAI, initiating with a $500 million investment and expressing a commitment to contribute up to $2 billion.

Related content: Healthcare Mobile App Development: Guide & Examples

Over 50% of AI startups were founded within the last seven years

There are 46,000+ AI startups in the world, with over 50% of them established within the last seven years. This surge reflects a commitment to leveraging AI technologies. The influx of AI vendors marks a transformative era, reshaping the dynamics of healthcare, marketing, construction, design, and other industries.

Related: Top industries using AI

Nearly all companies (93%) of all sizes have reported encountering tech skill shortages in the last 12 months, marking an increase from 86% in 2021

The existing developer talent gap is more evident than ever. According to Hays’ 2023 research, 94% of employers seeking tech talent have faced a skills shortage in the past year.

In 2023, food delivery startups got the highest investments in South America ($404 million)

Brazil-based food delivery startups have received the most significant deals that have driven the category’s total value beyond $400 million. Following closely, the cloud retail infrastructure segment, led by Colombia with four startups, including Rappi, Foodology, Muncher, and Melonn, stands out. Investor interest in Agricultural Marketplaces and Fintech startups holds the third position, experiencing a notable 73% increase in funding in 2022, amounting to $191 million.

Related content: App ideas for startups [list]

Companies are actively engaging with AI

A significant portion (37%), is in the process of developing a comprehensive AI strategy. Another 28% have successfully implemented a holistic strategy and 25% have chosen a more focused path, concentrating their strategy solely on limited or specific use cases. This nuanced distribution illustrates a dynamic spectrum, ranging from initial development to comprehensive deployment and targeted application within the corporate landscape.

Organizations of all sizes experience severe labor shortages, need to hire many professionals to handle AI projects

Companies most frequently hired software engineers for AI-related roles, indicating a shift from merely experimenting with AI to actively integrating it into enterprise applications. However, the persistent shortage of tech talent poses a challenge, potentially hindering this transition for some companies. 

A significant majority of companies note major challenges in hiring for various AI-related roles, highlighting the ongoing difficulty in securing skilled professionals in the tech industry.

Ukraine remains a major hub of outsourcing dispute the ongoing war, hits a record-breaking $5.5 billion in tech exports

While war has wreaked havoc on much of Ukraine’s economy, the IT sector stands out as a notable exception. By November, the industry had achieved record annual export revenues, reaching $5.5 billion. This marked a significant 13% increase compared to the same period in 2022.

IT businesses of all sizes increased the share of outsourcing in their IT operational budgets

The average percentage of the budget dedicated to outsourcing in IT organizations increased to 8.1% in 2023, which represents a significant increase since last year.

Related: The best examples of outsourcing

Startups and small companies anticipate AI to increase their needs for outsourcing in engineering (83%), sales and business development (78%), and marketing (77%)

Most small business leaders expect a rise in demand for outsourced services in engineering, sales, business development, marketing, IT support, HR, and accounting and finance due to the increasing influence of AI

Related: What is software development outsourcing?

Startups and small businesses commonly outsource tasks such as accounting (37%) and IT (37%)

Small businesses and startups in all industries opt for outsourcing in these areas because these tasks demand expertise and skills that may not be available in-house. 

Businesses have spent US$ 971.2 billion on outsourcing in 2023, with IT services outsourcing ($519.3 billion) and shared services ($240 billion) growing the quickest

The global outsourcing market (OSS) is anticipated to experience a compound annual growth rate (CAGR) of more than 7.4% from 2019, projecting a market size of US$ 971.2 billion by the year 2023. If this growth trajectory continues, the OSS industry is poised to surpass the US $1.0 trillion mark within the next six years.

India is emerging as a global leader in IT and business process outsourcing for both startups and larger companies

In the realm of IT and business process exports, India witnessed revenues amounting to $108 billion. The country’s share in the global outsourcing market reached 56% last year, marking an increase from 52% in 2012.

Related: Outsourcing Mobile App Development to India. Yay or Nay?

The United states remains the world’s best country for startups in 2023

Statista ranks the United States as the top country globally for starting and growing startups, scoring 198 Quantity Score. This score considers various metrics, including the number of startups, coworking spaces, and accelerators, reflecting the robustness of the startup ecosystem.

The primary obstacle for 23% of small businesses when collaborating with an outsourced team is high costs.

Less than one-fourth of small businesses and startups working with outsourced teams say that a high cost is the biggest challenge, followed by difficult communication (21%) and failure to meet deadlines (14%). When contemplating these challenges, each one can be effectively tackled at the contractual level, ensuring the client is adequately protected.

Related: Best countries to outsource software development

The top three countries with the highest number of agritech startups are the US (6,300+), Canada (1,100+), and Brazil (430+)

The agritech startup landscape varies globally. The United States leads with over 6,300 registered startups, followed by Canada with 1,100. Brazil, the Netherlands, Germany, and France have significant presence, while Israel, New Zealand, Ukraine, and South Korea exhibit comparatively smaller but notable agritech ecosystems.

Note: the number of startups is changing every week, so this data may be accurate only at the time of publication

Outsourcing is crucial for building successful fintech companies, driven by the demand for new capabilities (45%)

Fintechs engage in outsourcing primarily to enhance user experience (45%), address deficiencies in current resources and capabilities, and speed up time to market (43%). Moreover, almost all fintech startups (84%) considered outsourcing ‘business critical,’ signifying its indispensable role in the business’s day-to-day operations.

Customer communications (60%) and software development (59%) are the most popular services that Fintech startups outsource

On average, about 18% of budgets in fintech startups and mid-size companies is allocated to outsourcing. The substantial investment in outsourcing throughout the fintech industry suggests that businesses are recognizing the areas to prioritize in terms of both time and financial resources (with the top areas including customer communications and software development)

Super-apps might be coming to the U.S. soon

A huge opportunity for IT startups might be approaching: developing super apps. Using a super app (like WeChat) holds at least a “slight” interest for seventy-two percent of the surveyed participants in a recent PYMNTS study. Notably, 8% to 10% more respondents from the United States express a ‘very’ or ‘extremely’ keen interest in a super app compared to consumers in other regions.

Note: A super app is an application designed to offer customers, partners, or employees, a range of fundamental features along with the ability to access independently developed mini-apps. Constructed as a platform, the super app aims to provide a mini-apps ecosystem, enabling users to select and activate these mini-apps for a seamless and personalized app experience.

The United States is home to the highest number of unicorn startups

In 2023, the worldwide count of unicorn startups, valued at over one billion US dollars, has risen to 1,361, slightly surpassing the 2022 figure of 1,312. The United States leads with 653 unicorns, featuring prominent entities such as SpaceX, Instacart, Stripe, Epic Games, and Databricks. The cumulative value of these US unicorns stands at $360 billion.

EV battery technology startups become one of the most successful in raising funds, with 2023 funding levels exceeding $9.2 billion

Recently, there has been a notable surge in funding for battery startups, with three rounds exceeding $1 billion in September 2023 alone. Among those fast-growing startups, Redwood Materials secured $4.38 billion for their battery recycling startup, Ascend Elements received $2.53 billion for sustainable battery materials, and Verkor obtained $2.11 billion for low-carbon batteries in the electric mobility sector.