BENGALURU: Though the founding team size in a start-up depends on various factors, there always exists a dilemma on the number of founders.
Market intelligence platform PrivateCircle Research in its latest analysis points out that in the last 10 years, about 22% of Indian unicorns were started by solopreneurs when compared to two or more co-founders leading the rest.
It reveals that investors prefer co-founder led companies as it is indicated by higher funding raised by co-founder unicorns. Further, 40% of these solopreneurs have started fintech unicorns including CRED, Slice, GoDigit Insurance, Acko and others. Interestingly, Bengaluru was the most preferred headquarters location for solopreneurs of the last decade.
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.”
Data also suggests a higher win rate for start-ups with two or more founders. PrivateCircle found that Indian unicorns, on average, have two founders. The average revenue generated by co-founder unicorns is about Rs 2,909 crore, which is 32% more than the average revenue of solo founder unicorns that is about Rs 2,196 crore.
However, some solopreneur-led unicorns have managed to raise large funding rounds especially from Bengaluru.