Introduction – Startup Funding Basics Since the beginning of the COVID-19 pandemic, startup activity has skyrocketed within the United States. [1] In 2025 alone, over 5.1 million entrepreneurs took the leap from business idea to formation. [2] Yet, despite this trend, only roughly 70% of new businesses survive beyond two years of formation and only 50% of businesses survive beyond five years. [3]  Even those startups that are “VC-backed,” often indicating perceived high gro