Thoughts on startups by investors that
fund them & entrepreneurs that run them

How many startups are created every day?

This depends on how you define “startup”. Is a college student who advertises his dog-walking services a startup? How about one who spends nearly full-time developing her iPhone app? A real estate developer who incorporates to buy a piece of land in which to build a building?

Each year in the US there are likely tens of millions of individuals starting up something (like a dog-walking service or an iPhone app) on their own.

Of those, approximately three million actually incorporate their business.

Of THOSE, approximately 600,000 actually hire at least one person other than the founder.

And of those “employer businesses”, about 60% are bootstrapped or funded by the founder, 30% are funded by friends and family, and 10% are funded by angels.

You can figure that those numbers (starting with Employer Businesses) are very roughly half of the global startup world.

Note: These are general averages over a few years, and should be taken with a great deal of salt. I use them only as a guide to ballpark things for you 🙂

*original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *

Written by David S. Rose

user David S. Rose Founder and CEO,
Gust

David has been described as "the Father of Angel Investing in New York" by Crain's New York Business, & a "world conquering entrepreneur" by BusinessWeek. He is a serial entrepreneur & Inc 500 CEO who chairs New York Angels, one of the most active angel investment groups. David is also CEO of Gust.

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