USA Startup Ecosystem: The Evolving Entrepreneur Landscape

The startup trend is gaining more and more traction as the days pass by. According to the Global Entrepreneurship Monitor or GEM report, the USA startup landscape has seen a surge in the number of entrepreneurs in the country, both male and female. The report stated that female entrepreneurs increased by 18%, while a 20% increase in male entrepreneurs was noted. This shows that the number of startups and entrepreneurs is increasing substantially in the USA. But do you know which domain sees the most startups and why? In this blog, we will answer this and a few more questions along with this. 

The Most Trending Domains For Startups In The USA

The USA startup landscape is always evolving, and some new changes are being implemented even as we speak.

Tech And Software Startups

Tech and software startups have boomed worldwide in the last few years. The USA is no different. Moreover, the USA has some of the biggest tech startups in the world. The USA startup landscape is so dominated by technology that according to the US Bureau of Labor Statistics, almost 31% of all the startups in the USA are tech or software startups. This shows that tech startups dominate the start landscape in the USA and in the world. PitchBook mentioned that the technology sector witnessed remarkable funding of around $156.2 billion in 2021.  

E-Commerce And Online Retail

Another domain in which the number of US startups has increased significantly is the e-commerce and online retail sector domain. According to, around 15.4% of all sales made in the US come from e-commerce platforms and accounted for almost $1.118 trillion in revenue in 2021. E-commerce has immense potential, and the USA startup ecosystem is trying to leverage all the potential in the industry. 

Health Care And Biotech 

One of the domains where USA startups are flourishing is healthcare and biotech. Biotech is referred to as leveraging technology to care for people’s health and body. Moreover, this industry also receives a ton of investment. According to CB Insights, around $32.3 billion worth of funding was provided to this industry in 2020. 

Food And Beverages

Americans love their food, and American entrepreneurs have quickly capitalized on this market. The food and beverage industry in the USA is bigger than any other country and is worth around $1 trillion, which is why many entrepreneurs want to capitalize on this market. According to Forbes, startups launch around 11,000 new food and beverage products in the USA annually. Moreover, the growing emphasis on organic and healthy food has opened up various entrepreneurial opportunities. The Organic Trade Organization of the USA reported that the organic food market in the USA reached $60 billion in 2022. One of the best examples of a food and beverages USA startup is PRIME Hydration, which has become a global sensation. 

Service Oriented Businesses

Service-oriented startups are a good way to make a name for yourself. The service-based business sector is thriving, and these startups can flourish across multiple sectors, such as consulting, marketing, hospitality, etc. However, due to the vague nature of the industry, there is a lot of competition within. According to the Small Business Association of the US, out of all businesses in the USA, 80% are service-based businesses. While the consulting service alone accounts for around $259 in revenue. 

Renewable Energy And Clean Tech

As the world moves towards a more sustainable future, we are seeing a boom in the renewable energy and clean tech sectors. More and more households and industries have started using renewable energy for their operations, which opens even more doors for entrepreneurs in these industries. According to the US Energy Information Administration, there has been around 12% increase in renewable energy consumption. Moreover, the clean energy market is expected to reach a whopping $583.5 billion by 2028. 

Artificial Intelligence

Another domain in which USA startups are thriving is artificial intelligence. There are approximately 67,200 AI startups worldwide, and the USA comprises the majority of them, at 23,209. As the world moves towards AI, more and more startups are emerging to capitalize on this growing trend. Moreover, the AI industry in the USA is projected to reach $106.5 billion in 2024 and is expected to grow at a CAGR of around 14.7%. 

The Ever Changing Ecosystem Of USA Startups

The USA startup ecosystem is evolving daily, and it’s safe to say that America leads the world in terms of the number of startups. Moreover, the abundance of startups means that innovations will happen more often, resulting in a better quality of life. We hope you liked our blog. Feel free to comment and let us know which topic you want us to cover next.

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