A new survey of American startup founders by Engel Investment Network (AIN), the world’s largest online angel investing platform, challenges the ubiquitous stereotype of the twenty-something working out of his parents’ garage.
The 2025 AIN Founder Survey shows that the average founder is now middle-aged and often relies on outside work to keep their business running.
According to the survey of 610 startup founders, 65% are over 45 years old, while more than 1 in 3 (38%) are over 55 years old. Meanwhile, 70% are men, compared to 29% women, highlighting a gender gap in those seeking financing.
1 in 2 (50%) work part-time or full-time to support their startup. 91% have financed their business with their own savings, while other important sources include family and friends (24%) and a bank loan (10%).
When it comes to fundraising, looking for external capital takes up a lot of founders’ time: 46% of respondents spend 30% or more of the week actively fundraising.
Meanwhile, more than 1 in 4 (26%) spend more than half their week solely on fundraising, effectively turning it into a second job. 45% say it takes so much time that it affects their ability to run their startup.
Despite the time it takes to raise funds, the data shows that most founders don’t spend much of that time on investor due diligence. 43% do nothing or only search briefly. Another 26% only do LinkedIn and website research. Less than a third (30%) conduct serious due diligence, involving founder reference checks, industry fit or founder reference checks.
Looking ahead, US startups remain optimistic about their prospects: 42% are very optimistic and another 22% are quite optimistic. However, cash flow is the biggest potential risk, cited by 84% of startups. In second place is inflation, cited as a concern by 37% of startups, followed by high interest rates, 34%.
Meanwhile, 34% of startups surveyed said they took action in response to the US H-1B visa policy that imposes a $100,000 fee on new international applicants. Key measures taken included shifting to remote foreign staffing, focusing only on domestic staff and exploring alternative work visa pathways.
When asked about the most important non-financial sacrifice when running a startup, sleep (23%) topped the list, followed by mental health (19%) and family (17%).
Based on the findings, AIN is launching a new content series aimed at improving fundraising efficiency, freeing up founders to focus on their businesses.
According to Mike Lebus, founder of Angel Investment Network, “The idea that all successful startups are launched by 22-year-olds with immediate angel investment is a fantasy, perpetuated by TV shows and social media that often ignore the hard-earned experience and financial stability needed to take a calculated risk. Our data shows that entrepreneurship is often a second-act career, requiring founders to pay their own bills while they build, using personal savings or salary as their primary initial funding source.”
He continued, “Angel investing can be a crucial source of funding as startups scale, but fundraising consumes a tremendous amount of time for American startups. By investing time in the groundwork and following best practices, founders can more efficiently increase their chances of raising the capital investment to grow their business.”
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