7 Enlightening Statistics To Know About Global Startups
7 Enlightening Statistics To Know About Global Startups Pixabay

After a year of turmoil, many countries around the world are now looking to build back their economies, with a recent boom of startups in Africa, Asia, and the United States. But although the pandemic might have taken a toll on national economies and global trade - startups were seen as the beacon of economic investment for most countries. Looking beyond the most valuable startups in the world, towards the broader picture, some interesting facts will emerge.

In 2020, more than 70% of the investments came from startups in Indonesia, with the region of Southeast Asia drawing in more than $8 billion of investments. In Africa, fintech startups are looking more promising, with more than $900 million in revenue raised over the last 6 years, and international players looking to pump local startups with funding and crypto investments in the coming months.

Young entrepreneurs and some highly educated startup owners are looking to make a difference, not only for local economies but also on a global scale. According to the National Association of Software and Service Companies in India, more than 450 new Agritech startups were formed in 2019, looking to assist India’s growing population and limited supply of food sources as climate change is taking a toll on producers. These entrepreneurs are shaping the future through software and building a modernized society hinged on the use of advanced technology.

Indonesia rules in Southeast Asia

More than 70% of annual investments in 2020 were drawn in by startups. Indonesia is leading the pact at the moment when compared to other great startup nations such as Malaysia, Singapore, Thailand, Vietnam, and the Philippines. In Singapore, roughly 64% of investments were thanks to startups, still, a mere second compared to the overwhelming force of Indonesia.

Agritech is booming in India

Throughout 2020, the agritech sector in India saw an 11.9% growth even as the country battled strict lockdown regulations and surging coronavirus infections. Agritech startups are helping more than 100,000 farmers, and in the last year alone the agritech market contributed more than $24 billion to the local economy. With more than 1000 agritech startups, and contributing over 55% to local farming efforts, this is one sector that will see massive growth throughout the final months of 2021.

Latvia is the next best startup hub in Europe

Although Latvia is relatively smaller in population compared to other European nations, the Baltic nation was one of the first countries in the EU and the world to pass a Startup Law. This law looks to support and protect local startups in the country and it’s this progressive movement that has seen a boom in tech startups coming from Latvia. These startups are bringing in millions of funding each year, while at the same time finding solutions to current environmental issues.

VCs are aiming for startups in Lisbon

In the last few years, Lisbon has seen some major improvement around its startup economy, with VC investment raising more than €117 million throughout 2019. Lisbon has now been ranked as one of the richest regions in Portugal, with local GDP exceeding the EU per capita average. Portugal has also introduced the golden visa and tech-visa program for non-EU residents looking to open a startup in the country. This invites more potential VCs, but also creates a fluid and diverse economy.

American startups are surging

Americans are starting new businesses and startups like never before with more than 4 million new businesses opened throughout 2020 according to a report from the Peterson Institute for International Economics. This is a 24% increase compared to 2019, and the Census Bureau concluded that startups would aim to increase employment rates by 15% in the next year.

Startups offer hope as new employers

As the surge of new businesses in America keeps growing, the US Census Bureau has reported that roughly 35% of new businesses and startups are looking to become likely employers within the next year. Although unemployment rates have fallen and somewhat stabilized, young startups can offer hope in a gloomy labor market.

Big names, and big money for Israeli startups

In the last decade funding for small startups has increased more than 400%. There has been an annual increase in investing in entrepreneurs since 2014, and in 2020, Israel closed off the year with more than $9 billion in revenues raised by tech firms and startups. December 2020 alone saw more than $760 million in funding pumped into local tech startups, higher than the $230 million raised in December 2018.

Final take:

Startup culture has now become infectious, and young entrepreneurs are flooding the market with innovative ideas, concepts, and technology. It’s becoming ever so clear now, that younger generations aren’t skilled in business development, but rather understand the needs of the market, and follow current trends. The United States remains the number one choice for business incorporation, especially for multinationals that require a stable legal framework with a scaled advantage. If you know how to start an LLC, that may be one of the first steps towards becoming the next big name in the world of startups.