How Many Tech Startups Are Created Each Year?

NetShop ISP
3 min readMar 25, 2020

Every year, many entrepreneurs and business owners establish new businesses. Most of them have high hopes for their business future and are pretty excited about it. However, for small businesses, statistics show that most of them do not last for more than four years. And this is a sad reality.

However, despite their failure rates, there are still a big number of small businesses that get through that critical period and had managed to survive. How many tech startups are created each year? What are the exact numbers of startups that are there and what industry have high success rates? In this article, we will show you some gathered statistics of those startups in the business industry.

But to start off, let’s first define it.

What Are Tech Startups?

A tech startup is a company that provides technology products or services to the market. They are companies that deliver either technology products or services that are new in the market or deliver existing technology products or services in a different way.

By definition, a startup is a company or a business in different forms that make development and research about a new thing that is to be introduced to the market. In history, startups are only limited to tech companies, but as years go by, technology has become a standard factor, which has made the nature of startups to become innovative and scalable in growth.

How Many Startups Are There?

If you might not notice, startups are everywhere. Through times, the number and percentage of startups are just growing rapidly and at an increasing rate than before.

Worldwide, there are about 472 million entrepreneurs. Statistically, there are about 305 million total startups created in a year. 1.35 million businesses out of those startups are tech related. Also, there are 3,173 companies that increased from 185 accelerator programs. When it comes to company exits, only 182 are reported to exit from the number of companies that accelerated.

The Global Entrepreneurship Monitor (GEM) has had done massive statistical research on how many tech startups are there in a global scope. Reportedly, there are about 300 million people who are trying to start 150 million businesses worldwide. One-third of that number are to be launched, and there are about 50 million new businesses each year, which leads to 137,000 startups made per day. With that significant figure, there are also an estimated 120,000 businesses that are terminated each day. That is a statistical data recorded in a global scope.

How Many Are Tech Startups?

Just like business startups, tech startups blew their numbers off to the top in recent years. With different cloud services, high-accessibility, and cheap open-source software, no wonder people are hungry for new opportunities and business ventures. It may seem indefinite to know how many tech startups are there in a worldwide scope, but it’s not impossible to do so.

In fact, there are most recent research reports that said that the total number of technology startups economy increased by up to 47% in the last decade. And, these new businesses have made a huge impact and contribution to the every country’s economic growth.

The Information Technology and Innovation Foundation has made an analysis of both science and tech policy that intends to make the government support more tech-startups inclined. It also points out that technology has made a way for entrepreneurs to think critically.

Technology startups are thriving. They have large opportunities that they can offer to the business industry. Since 2007, the number of tech startups has increased by up to 47 percent. From 116,000 establishments in 2007 to 171,000 in 2016, these startups are tech-based.

Technology has also helped people with a high entrepreneurial spirit. With its cheap and accessible technology, such as cloud services, people have found the potential of opening new businesses and the innovation in it. Keep in mind that it is not only limited to one-entrepreneur startups, but to larger organizations as well.

To know more about tech-startups in a global scope, you can go here.