Startup Funding Espresso -- What Percentage of Startups Fail?

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Startups have a high failure rate. What percentage fails?

Out of 100 startups/investments:

-75 will fail or turn into a lifestyle business within 2 years 

-25 will remain on the venture track after 2 years

Of those 25:

-half will die or turn into a lifestyle business between years 2-4

-15 will remain on the venture track for the long haul

Of those 15:

-10 will fade out

-5 will be a win with varying degrees of success

It will be difficult to choose the top 5, so you must take a portfolio approach to startup investing and diversify across several deals.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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