Unicorns with two or more founders take lead in investments: PrivateCircle

Indian unicorns on average have more than one founder, with 78 per cent of co-founder led startups reaching unicorn status, according to a PrivateCircle report.



analysis revealed that average revenue generated by cofounder unicorns was 32 per cent higher at Rs 2,909 crore, as compared to that of solo founder unicorns at Rs 2,196 crore.

Considering latest revenue numbers for each company, this underlines a higher investment ratio for startups with two or more founders, with co-founder led companies also taking a le in raising investments, research suggested.

Commenting on trend, Director of Research at PrivateCircle Murali Loganathan said, " founding team size dilemma is one of oldest dilemmas faced by startup founders. Ultimately, choice depends on individual's temperament, goals, and specific dynamics of venture y are embarking upon. Variation in central tendencies of both 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.” 

higher average revenue of co-founder led companies hints towards two or more founders bringing in complementary skills and broer networks, which can le to more effective resource utilisation and greater business success consequently, he ded.

As per analysis, 22 per cent of Indian unicorns, or about 24, were started by solopreneurs with Bengaluru emerging as most preferred hequarters location for ir ventures in previous dece.

Of se 24 unicorns, 40 per cent or close to 10 startups are in fintech space - including Kunal Shah-founded CRED, Slice founded by Rajan Bajaj, Kamesh Goyal-founded GoDigit Insurance and Acko led by Varun Dua. 

Six of se solopreneur-led unicorns have launched successful IPOs, while seven unicorns led by founding teams have been listed on stock exchange.

Bengaluru emerged as leing destination for solopreneur-founded unicorns raising large funds, PrivateCircle data suggested.

While journey of solopreneurs gives decision autonomy and helps avoid co-founder conflict, it can also limit networking opportunities and resources.  

study considered 113 unicorns for analysis, with 61 of m founded in last dece itself.