The Ideal Age to Launch a Startup - Story of Indian Entrepreneurs
From Forbes to VentureBeat, there have been enough articles that have been published in the west on the correlation between age and starting up. But one hardly finds any concrete information on the subject in India. Today, we aim to bridge some of that gap.
In an analysis of the some of the well-known startups and founders in India, we bring forth 5 key insights on the interplay between age, background, launch date, co-founder(s), and fundraising.
#1 - Earlier the better: While the launch age bracket ranged from 19 to 48, the median age for launch is 27. 80% of the founders launched their startup before hitting 30. Except Pranay Chulet (Quikr) who started up at 34, all the unicorns in India were launched by young entrepreneurs. Potential reasons might include India’s demographic profile (average age: 25), risk-taking ability, alma mater’s support, and/or digital-oriented nature of current startup boom.
#2 - Engineering or MBA as education: With the exception of Ritesh Agarwal, all the founders were either engineers or MBA or both. Only Engineers outdid MBAs in a ratio of 2:1. It is a close fight between IIT Delhi (Flipkart, Snapdeal, Zomato, Quikr) and IIT Bombay (Ola, Housing, TinyOwl) for the top honors. MBAs tended to start out later with schools like Harvard, Wharton, Columbia, and IIM A/B/C. 50% of the founders launched their business within 3 years of completing their education. Educational institute was also a very likely place for meeting your co-founder.
#3 - IT, Consulting, or Finance as profession: If founders had professional experience, 3 sectors were in higher demand - IT, Consulting or Finance. The correlation between Engineering and IT is obvious. Bain & Co. has the highest representation with 2 startups/ 3 founders - Zomato and Delhivery. Lot of the founders worked with startups before starting on their own.
#4 - Timing also matters, Launch when the chips are down: Majority (60%) of the startups were launched during one of the worst global economic period of late 2007 to 2011, including all the unicorns of India. Also shows that becoming a unicorn has been a 5–7 year journey until now.
#5 - No statistically significant correlation between age (launch or current) and amount raised: There is no correlation (-0.2) between founder’s age and amount raised. Not surprisingly, the e-commerce founders have raised the maximum amount per life year. While the current numbers for younger entrepreneurs are impressive, the jury is still out on whether they will be able to sustain their momentum. The troubles at Housing.com and TinyOwl serve as reminders about the perils of mixing young founders and dollops of money.
Bottomline — These results should be consumed with a pinch of salt. Biases like survivorship, halo, market vagaries, or correlation-causation mixup should be factored in while reading the results.
Entrepreneurial success cannot and should not be generalised. Successful entrepreneurs, by definition, are exceptions. If you have the belief that your idea makes a difference, you should take the plunge irrespective of anecdotal experience. Instead of reading the analysis as younger the better, read it as the right time to startup is now!
Please share your experience in the comments section.