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North American startups - statistics & facts

North America, especially the United States, is home to many of the world's most successful startups, such as SpaceX, Instagram, and Airbnb. These companies have grown out of their startup status, but the region is still a hotbed of startup activity. Startups are companies in the initial stage of its operations and are often funded by venture capital. The goal of many startups is to reach the coveted unicorn status, which means that the company has a valuation of one billion U.S. dollars or more. North American companies are among the highest valued unicorns worldwide.

The importance of venture capital for startups

Startups rely on venture capitalists investing in their potential, thus the ability of the founders to sell their vision to investors is of the utmost importance to their survival. Venture capital investment volume reached record high levels in 2020 and surpassed the levels achieved during the dot com bubble of the late 90s. However, the founders aren't in the habit of accepting investment at any cost. A 2018 survey found that the terms of the deal and the investor having a good character were the most important factors for founders when picking a lead investor.

Lack of diversity in startups

A common criticism lobbed at startups and tech companies is the lack of diversity among the founders and board of directors - in terms of gender, sexual orientation, or ethnicity. As recently as 2020, more than half of technology and healthcare startups had no women on their board of directors. The venture capital funding gap for startups owned by people of color was fairly or very concerning for the majority of tech employees surveyed in August 2020. Over 80 percent of the respondents were from North America, so this is of particular significance for this region.

Interesting statistics

In the following 5 chapters, you will quickly find the 22 most important statistics relating to "Startups in North America".


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