Start-Ups Exposed

Startups Exposed The Anatomy of a Newborn Tech Company Many people dream of starting their own companies, but what does the typical startup actually look like in 2011? Here's a snapshot of how today's startus form, grow and behave. ? WHO ARE THEY? The average startup now consists of one Over 85% support their startup from savings and/or consulting work. to two people. IDEA Fact: Only about 20% of current startups have more than 2 people. Fact: Others are seeking investment from family members or angel investors. $ WHAT ARE THEY SPENDING? In fact, most only spend between $80-$500 per month in total. The majority spends less than $170 on www hardware each month. Why: Many startups develop mobile apps without expensive On what: Coffee, meetings, industry events, travel costs, recurring bills. hardware. $170 $500 6 HOW OLD ARE THEY? But if they can make it to 9 months, they will likely survive their first year. 45% of startups will last just 6 months before closing their doors. JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC WHAT ARE THEY DOING? About 32% are currently working on their prototype. And about 28% are either pitching their prototype or reworking it after pitching. Note: Pitching refers to trying to sell an initial build to customers or investors. Many require reworking as a result. Another 30% are ready to start selling their product. WHO WILL BREAK EVEN? But in reality, only 10% have yet broke even, and only -10% more are sure to break even in the next 3 months. %24 When it comes to breaking even, most founders guess they'll achieve it in 3-12 months. Note: Roughly 220% said they couldn't accurately guess at this time. !! WHAT PROBLEMS ARE THEY FACING? While specific problems are unique to each business, their setbacks fell roughly into 3 categories: 50% face problems with development. 30% are struggling with time issues. 20% find their hang-ups in sales and marketing. FOCUS Source: founderspeak.com