Only 22% of Indian startups led by solopreneurs have become unicorns in the last 10 years: Report

According to an analysis by PrivateCircle Research, startups with multiple founders have a higher success rate in India compared to solopreneurs (ventures led by one entrepreneur), with only 22 per cent of unicorns in India.

Additionally, 40 percent of these unicorns are in the fintech space, including CRED, Slice, GoDigit Insurance, and Acko, among others, the study said. It is no surprise that over the past decade, the country’s Silicon Valley, Bengaluru, has become the most preferred destination for solopreneurs.

The study analyzed 113 unicorn companies, 61 of which were founded in the past 10 years.

Investors also seem to prefer startups led by multiple co-founders, with such companies raising more capital on average than solopreneurs, the study found. However, a small number of solopreneur-led unicorns have successfully raised “significant funding, particularly from Bangalore,” and six have successfully launched IPOs.

Murali Loganathan, Research Director at PrivateCircle, said: “The dilemma regarding founding team size is one of the oldest dilemmas faced by startup founders. Ultimately, the choice depends on the individual’s temperament, goals, and the specifics of the business they are embarking on.” It depends on the mechanics.”

It turns out that unicorn companies in the country have at least two co-founders on average. The average revenue for startups led by multiple co-founders was Rs 2,909, which was higher than the revenue for ventures led by a single founder (Rs 2,196).

“The difference in core tendencies between the two groups suggests that investors prefer co-founder-led companies. There may also be an effect of co-founders having access to larger networks. No,” Loganathan said.