Only 22% of Indian unicorns started by solopreneurs in last decade, says report

Investors also seem to prefer multiple co-founder-led startups as the study found that on average such companies raise more funding than solopreneurs.

Success rate of startups with more than one founder is higher in India compared to solopreneurs (single entrepreneur-led ventures) as only 22 percent of Indian unicorns were started by the latter, according to an analysis by PrivateCircle Research.

Moreover, 40 percent of these unicorns were in the fintech segment, CRED, Slice, GoDigit Insurance, Acko, among others, the study said. It was no surprise that the country’s Silicon Valley Bengaluru was the most preferred destination for solopreneurs in the last 10 years.

The study analysed 113 unicorns out of which 61 were founded in the last 10 years.

Investors also seem to prefer multiple co-founder-led startups as the study found that on average such companies raise more funding than solopreneurs. However, a few solopreneur-led unicorns have managed to “raise large funding rounds, especially from Bangalore”, while six have successfully launched their IPOs.

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.”

It was found that, on average, unicorns in the country have at least two co-founders. Startups led by multiple co-founders had an average revenue of Rs 2,909 cr, which was higher than the revenue of single founder-led ventures (Rs 2,196 cr).

“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,” said Loganathan.