In the last decade, 22 per cent of Indian unicorns were started by solopreneurs as compared to two or more co-founders leading the other 78 per cent, according to an analysis by PrivateCircle Research.
40% of these solopreneurs have started fintech unicorns including CRED, Slice, GoDigit Insurance, Acko and others. Bengaluru was the most preferred headquarters location for solopreneurs of the last decade.
The data suggests a higher win rate for start-ups with two or more founders. PrivateCircle found that Indian unicorns, on average, have two founders. Further, the average revenue generated by cofounder unicorns ₹2,909 crore was found to be 32% more than the average revenue of solo founder unicorns ₹2,196 crore. This is based on the latest revenue numbers available for each company, said a press release.
The research also observed variation in central tendencies of both groups, indicating that on average co-founder led companies raise more funding than solopreneurs. For the uninitiated, Central Tendency is the statistical measure that represents the single value of the entire distribution or a dataset.
However, some solopreneur-led unicorns have managed to raise large funding rounds especially from Bangalore. Additionally, six unicorns led by solopreneurs have successfully launched their IPOs, while seven unicorns led by founding teams have been listed on the stock exchange.
Dr. Murali Loganathan, Director of Research at PrivateCircle said, “The founding team size dilemma is one of the oldest dilemmas faced by startup founders. Ultimately, the choice depends on the individual’s temperament, goals, and the specific dynamics of the venture they are embarking upon. Variation in central tendencies of both the groups indicates that investors prefer co-founder led companies. It can also be a function of co-founders being able to tap a larger network of contacts.”
