Startup Statistics
Last updated: June 2026 · 5 sourced statistics
America is forming businesses at record rates — 5M+ applications a year since 2021 — even as the venture market normalized from its 2021 peak. The failure math hasn't changed: cash exhaustion remains the top startup killer. Sources: Census Bureau, CB Insights, BLS, and NVCA/PitchBook.
Key takeaways
- US business applications have exceeded 5 million annually since 2021 (Census).
- 'Ran out of cash' is the top startup failure reason at 38% (CB Insights).
- US venture funding runs above $200 billion in recent years (PitchBook/NVCA).
At a glance
Every figure on this page in one table, each linked to its named source. Scroll down for the full context behind each number.
| Figure | What it measures | Source | Year |
|---|---|---|---|
| 5.5M | Americans filed roughly 5.5 million new business applications in 2023 — an all-time record — and have sustained 5M+ annually since 2021 (Census Bureau). | US Census Bureau, Business Formation Statistics | 2024 |
| 38% | 38% of failed startups cite running out of cash or failing to raise new capital as a primary cause — the top reason in CB Insights' post-mortem analysis. | CB Insights | 2021 |
| $200B+ | US venture capital investment has run above $200 billion annually in recent years (PitchBook-NVCA Venture Monitor). | PitchBook-NVCA Venture Monitor | 2024 |
| ~22% | About 22% of new businesses fail within their first year; roughly half survive to year five (BLS). | US Bureau of Labor Statistics | 2024 |
| 27 days | The median small business holds just 27 days of cash buffer — for startups, runway math is survival math (JPMorgan Chase Institute). | JPMorgan Chase Institute | 2016 |
The statistics
Americans filed roughly 5.5 million new business applications in 2023 — an all-time record — and have sustained 5M+ annually since 2021 (Census Bureau).
38% of failed startups cite running out of cash or failing to raise new capital as a primary cause — the top reason in CB Insights' post-mortem analysis.
Source:CB Insights2021
US venture capital investment has run above $200 billion annually in recent years (PitchBook-NVCA Venture Monitor).
Source:PitchBook-NVCA Venture Monitor2024
About 22% of new businesses fail within their first year; roughly half survive to year five (BLS).
Source:US Bureau of Labor Statistics2024
The median small business holds just 27 days of cash buffer — for startups, runway math is survival math (JPMorgan Chase Institute).
Source:JPMorgan Chase Institute2016
When these numbers don't apply
Aggregate statistics hide a lot. Read these caveats before quoting a figure as if it describes your specific situation.
- Most of the 5M+ applications are ordinary small businesses, not venture-style startups — the two populations differ sharply.
- CB Insights' failure reasons come from self-reported post-mortems of a non-random sample of startups.
- Venture-funding totals swing with market cycles; a single year doesn't define the trend.
How we compiled this data
Compiled June 2026 from Census Business Formation Statistics, CB Insights research, PitchBook-NVCA data, BLS survival tables, and JPMorgan Chase Institute analysis. 'Startup' here spans venture-backed and ordinary new businesses; sources note which population they measure.
We hand-collected each figure from its original publisher rather than recycling secondary round-ups, cross-checked the headline numbers against the source documents in June 2026, and link every statistic to the report it came from so you can verify it yourself. Where a publisher issues annual updates, we cite the report edition and flag the year inline.
Frequently asked questions
How many startups are founded each year?
Over 5 million US business applications annually since 2021 (Census) — though only a fraction are high-growth 'startups' in the venture sense.
Why do most startups fail?
Cash exhaustion leads every analysis — 38% in CB Insights' post-mortems — followed by no market need, competition, and team issues.
How much venture funding is available?
US VC investment has exceeded $200 billion annually in recent years (PitchBook/NVCA), concentrated in software, AI, and life sciences.
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