US Startups are becoming more streamlined

Startups are launching leaner than ever.

Back in 1994, the average U.S. startup was founded with 7.2 people. By 2023, that number had dropped to just 3.5. Smaller, faster — and increasingly common.

The number of new startups in the U.S. has tripled over the past few decades:

• 1994: ~500,000

• 2023: 1.5 million

This combination of lean teams + more startups reflects a new paradigm. The barrier to entry has never been lower, thanks to more accessible tools for capital, distribution, and marketing.

Small teams favor flat structures, intense collaboration, and purpose-driven work. But not without trade-offs: burnout, unclear roles, and instability often come with the territory.

What does this shift tell us about the future of innovation? And how can we balance agility with sustainability in the early stages?