Can You Really Get Rich From Startups? The Truth About Startup Wealth
So, you’re thinking about startups because you’ve heard tales of ordinary folks turning into millionaires overnight. Maybe you know about Brian Chesky sleeping on air mattresses before Airbnb took off, or you’ve watched documentaries about Zuckerberg and Facebook. These stories have a way of making startup life look like a never-ending parade of Ferraris and success tweets. Here’s the catch: for every overnight sensation, there’s a graveyard of ideas that never made it out of the garage. Startup wealth—a mix of myth, luck, effort, and timing—is far from guaranteed. Let’s peel back the layers and see where the money really comes from, and why most people never strike gold.
The Startup Dream: Hype, Reality, and the Numbers
A lot of people imagine a world where every founder becomes an instant millionaire. But look behind the big headlines, and you’ll see it’s usually a few outliers that grab the spotlight. The stereotype of the hoodie-wearing billionaire is rare because, statistically, startups are a tough game. According to a 2024 Crunchbase report, only about 1 in 10 startups make it to a Series A funding round. Of those, maybe one out of ten more ever see a decent exit—selling or going public for enough money to make early founders wealthy.
Let’s talk about unicorns. Everyone wants to create ‘the next big thing’—a company worth over $1 billion. By mid-2025, there were just over 1,560 unicorns worldwide. That’s a mind-blowing number until you realise hundreds of thousands of startups launch each year. So if you do the maths, your actual shot at becoming a unicorn founder is similar to playing the football lottery. Most startups either quietly close up shop or end with just enough left for a pint at the pub.
But wealth isn’t all about unicorns. Many founders build solid, profitable businesses that eventually sell to bigger fish, sometimes netting a few million pounds. In practical terms, though, IPOs and huge buyouts still remain pretty rare. Most people who dive into the startup world work harder and longer than they ever did in a regular job, often earning less for the first few years. Sometimes a lot less.
Why do people do it? For some, it’s not just about the cash. It’s the chance to build something from scratch, steer their own ship, and, if things go well, never have to answer to a boss again. The freedom and thrill are seductive. But if your only goal is to get rich quick, there are probably safer (and less stressful) ways to make money than risking it all on a startup.
This doesn’t mean it’s impossible. Instagram, WhatsApp, and Monzo were hardly the first ideas of their kind, but what they had was timing, hustle, and sometimes, just the right bit of luck. Recognise that these stories are exceptions, not the rule. Still, plenty of founders strike it big—but it’s rarely fast, and it’s never easy. That’s the reality that gets ignored when people focus just on the headline-grabbers.
What Makes Startup Millionaires: Inside the Formula for Success
If only it were as simple as building a cool app and waiting for the cash to roll in. The founders who do get rich from startups have something more than a clever idea. They combine brutal honesty about their market, relentless execution, and the ability to pivot before disaster strikes.
Let’s look at a few ingredients most self-made startup millionaires share. First, timing. You can have a brilliant product, but if the world isn’t ready, it flops. Take Club Penguin—huge in its time, nearly forgotten five years later. Or look at Slack. It started as an internal tool for a failed gaming project and pivoted to chat software when the original idea bombed. Timing that shift made all the difference.
Second, hustle and resilience. Brian Acton, one of the WhatsApp co-founders, got rejected from Facebook just a year before selling his messaging app to them for $19 billion. He didn’t quit after rejection—he just kept building. Many founders talk openly about surviving on ramen, burning savings, or moving back in with family just to keep their dream alive.
Third, networks and mentors. Most founders who make it big aren’t working alone. They know people—smart advisors, veteran investors, talented co-founders. Silicon Valley isn’t rich just because of ideas—it’s rich because of connections. In the UK, we’re catching up, but London, Manchester, and Cambridge are where those networks are strongest. It’s no coincidence that the majority of high-value UK startups come out of those cities.
Fourth, the ability to scale. Founders who become wealthy usually know how to grow beyond three people and a laptop. They’ve convinced investors, built teams, and put systems in place so the next big contract won’t end in chaos. Not every founder’s cut out for this phase, and lots of promising startups stall because they never figure out how to handle rapid growth.
Finally, luck is real. Sometimes you do everything right, and your timing is still off because the economy tanks. Or a key customer ghosts you. Or a pandemic hits. Even in the best cases, almost every startup sees points where things could’ve gone sideways. But when things line up, that’s when people get rich—and that’s what makes the gamble so tempting.
One last thing—founders rarely cash out right away. It can take 5 to 10 years (or more) to turn sweat equity into real cash. Until then, a lot of that ‘valuation’ everyone boasts about is just paper money. If things go south, all those stock options can end up worthless. So yes, some get rich, but it’s a marathon, not a sprint.
Risks, Wipeouts, and Lessons From the Frontlines
The startup world is littered with stories of wiped-out savings and careers gambled on a single idea. Many founders end up working longer, living leaner, and burning through cash faster than planned. And if you look into the numbers, only about 10% of well-funded startups ever return enough money to make their original investors happy—never mind making founders rich.
Some of the biggest risks aren’t obvious at first. You might hustle for years only to watch a bigger rival launch the same product. Or maybe you get caught in endless legal battles over patents or contracts. Even culture—the people you hire—can destroy a good business if they’re not pulling the same direction or if messy fall-outs hit social media.
There’s also something called ‘founder dilution.’ To raise more money, you give away chunks of your company. By the time you cash out, you could own a much smaller slice than you thought. A founder who started out with 100% and ended up with 5% during a huge sale is more common than you’d think. The headlines will say, ‘sold for £100 million!’ but only a small bit might actually land in your pocket after investors, employees, and taxes are paid out.
Lots of founders quietly return to 9-to-5 jobs, often with lessons and battle scars rather than fortunes. But here’s something you don’t hear enough: a failed startup can be worth as much as a degree. The grind teaches you how to handle money, juggle priorities, and deal with failure. Plenty of the world’s top founders went bankrupt before they struck gold. Richard Branson’s first project was a magazine that lost money. Elon Musk almost lost everything after PayPal, betting his own cash on SpaceX and Tesla before both nearly cratered.
The founders who walk away with big paydays often do one thing differently: they learn to quit what’s not working fast. Instead of clinging to a dying idea, they pivot, start over, or jump onto something new. That tough call saves them from years of wasted time and empty bank accounts.
It’s not just about skill, either. In the UK, the tax rules for entrepreneurs are pretty generous—things like Entrepreneurs’ Relief (now Business Asset Disposal Relief) mean founders can pay as little as 10% on gains up to a lifetime limit when they sell their businesses. Tiny things like understanding these rules can mean the difference between walking away rich and walking away broke.
Realistic Tips: What to Do If You Want to Get Rich From Startups
First, get honest about the odds. Dream big, but build safety nets. That means savings, side hustles, or even keeping a part-time job until your startup’s making real money. There’s no shame in hedging your bets.
Second, pick your co-founders carefully. They’ll see you at your worst and your best. Trust, complementary skills, and shared values go further than a snazzy résumé. Loads of startups implode because the founders fell out when things got tough.
Third, network like your future depends on it—because it does. In Manchester, the Northern Quarter and sci-tech meetups are buzzing with people who’ve been there. Meet people who know investors, lawyers, and talent. Ask for advice, be ready to give it back, and always keep your LinkedIn fresh.
Fourth, know your numbers. Don’t get obsessed with raising rounds just to make TechCrunch. Grow revenue. Learn what customers actually want and chase profitable growth. If you’re not making money without investors, your odds of surviving a downturn drop fast.
Fifth, pivot when you must. The best founders change direction—sometimes radically—when they learn something new. Listen to feedback, track data, and don’t get so attached to your original idea that you ignore better opportunities staring you in the face.
If you do catch a break and see serious offers on the table, talk to a real accountant and lawyer before selling a stake. Protect yourself. In some cases, cashing out a bit early is smarter than holding out for unicorn status.
Lastly, measure success by more than money. Getting rich is great, but building something you’re proud of has a value that can last longer than any bank balance. Most people who win big in startups come back for more—they enjoy the creation process as much as the payday.
So, can you actually get rich from startups? Sure, the odds are long, and the path is rough, but the rewards—financial, personal, creative—can outweigh the risks if you play your cards right. Just know what you’re getting into, keep your wits about you, and remember: every tech billionaire’s journey started with a to-do list and plenty of uncertainty.