Many people dream of starting their own companies, but what does the typical startup actually look like? Here’s a snapshot of how today’s startups form, grow and behave.

See the infographic below, and scroll down further for a full explanation:

anatomy-of-newborn-tech-company

1. Who are they?

  • The average startup now consists of one to two people. Fact: only about 20% of current startups have more than 2 people.
  • Over  85% support their startup from savings and/or consulting work.

2. What are they spending?

  • The majority spends less than $170 on hardware each month. Why: many startups develop mobile apps without expensive hardware.
  • In fact, most only spend between $80-$500 per month total. On what: coffee, meetings, industry events, travel costs, recurring bills.

3. How old are they?

  • 45% of startups will last just 6 months before closing their doors (Jan->Feb->Mar->Apr->May->Jun->Aug->Sep/Oct-Nov-Dec).
  • But if they can make it to 9 months, they will likely survive their first year.

4. What they are doing?

  • About 32% are currently working on their prototype.
  • Another 30% are ready to start selling their product.
  • And about 28% are either pitching their prototype or reworking it after pitching. Note: pitching refers to trying to sell an initial build to customers or investors. many require reworking as a result.

5. Who will break even?

  • When it comes to breaking even, most founders guess they’ll achieve it in 3-12 months. Note: roughly 22% said they couldn’t accurately guess at this time.
  • But in reality, only 10% have yet broke even, and only 10%, more are sure to break even in the next 3 months.

6. What problems are they facing?

  • While specific problems are unique to each business, their setbacks fell roughly into 3 categories
    • 50% face problems with development
    • 20% find their hang-ups in sales and marketing
    • 30% are struggling with time issues.

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About Author

Biplab Ghosh

Biplab lives his life around technology and is particularly keen to explore the intersection of technology and human behaviour. Always looking for new ideas, and ways that can make things simpler. He is a geek with the flair for travel and has great passion for music and theatres.

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