The DNA of a successful founder
1 min read · September 6, 2024
New Power Labs
What defines a successful founder?
A recent study by Defiance Capital examined the DNA of various successful founders to define common attributes among unicorns through a longitudinal study spanning a decade. It examined 845 unicorns and 2,018 unicorn founders in the US and UK from 2013 to 2023.
The study defined 3 key traits in the ‘DNA’ of a founder:
No “plan B”
“A chip on the shoulder”
Unlimited self belief
Many diverse founders cultivated a growth mindset, shaped by values, work ethic, and ambitions instilled during their childhood, to adapt to institutions that historically undermined their efforts based on their identity. The study found that 70% of unicorns have founders from underrepresented backgrounds (women, people of colour, immigrants, neurodivergent people).
Yet, we are still underfunding diverse founders. Top venture funds continue to invest in white male founders predominantly. When they invest beyond this archetype, venture funds tend to invest in male immigrant founders with degrees from elite universities. Funds are missing an entire talent pool due to a restricted view of a successful founder.
Bringing more attention to successful founders from underrepresented backgrounds can help expand our profile of a successful founder. The study shows that the stereotypical founder profile (all-white, male, local, Ivy League-educated) is rare among unicorn founders.
It might be time to rethink founder profiles.
Narinder
New Power Labs
Like what you’re reading? Subscribe to get weekly Equity Shots in your inbox.
