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How many founders do successful tech companies have?

32 pointsby vnorbyover 12 years ago

7 comments

okamiueruover 12 years ago
The title is accurate, and that is all the data presented tells you.<p>The implication that this can indicate which number that gives you the highest chance of success is completely bogus. Without taking account failures (or distribution of attempted companies by founder count) you have no data whatsoever for discussing what is most likely to succeed.<p>Makes me ask, what is this doing on HN?
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smarxover 12 years ago
&#62; That being said, based on the initial data, if you want to give yourself the best odds of having a high-growth tech company, two founders is optimal.<p>I don't see how that conclusion can be drawn from this kind of data.<p>EDIT: It looks like the post has been edited, so this criticism is no longer relevant.
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hluskaover 12 years ago
TL;DR -- The US census provides the wrong data to answer this question, but I can't think of a better way to spend a cold Sunday morning....:)<p>I did some digging on the US census site and found these numbers (for 2008):<p>- 22,614,000 returns were filed for non farm sole proprietorships. Of these, 16,434,000 indicated any type of income. Combined, these 16.4 million sole proprietorships reported a net income (less loss) of $265 billion.<p>- 3,146,000 returns were filed for partnerships. These returns showed a total of 19,300,000 partners. Of these, 1,609,000 returns indicated any type of income. Combined, the 1,609,000 partnerships reported a net income (less loss) of $458 billion.<p>Some numbers:<p>- 72.67% of sole proprietorships reported income.<p>- 51.14% of partnerships reported income.<p>- 22.614 million sole proprietorships generated $256b in net income (less loss). This is an average of $11,320.42 per proprietorship started.<p>- 3.146 million partnerships (covering 19.3 million people) generated $458 billion in net income (less loss). This is an average of $145,581.69 per partnership started. Or, this is a net income (less loss) of $23,730.57 per partner.<p>Using US census information on non incorporated businesses (in 2008) provides some interesting space for thought. A higher percentage of sole proprietorships report income, but on average partners in a non incorporated business report more income. This seems to indicate that it might be easier to get started if you go alone, but adding founders increases the magnitude of success (when it works out). Logically, this makes some sense, though I hesitate to make any conclusions based off of this data.<p>While this data is interesting, it is ultimately quite useless at answering the question. First off, this data is on all non incorporated businesses (other than farms). Therefore, this data may or may not be applicable to technology. The Deloitte report (and the writer's research) indicates that the top 100 technology companies have an average of 2.12 founders. The US census data gives an average of 1.62 founders per company. That difference could indicate differences in the two populations (ie - tech companies versus all companies) or sampling differences (Vibhu looks at 100 companies, I'm looking at data on 41 million).
Khurrumover 12 years ago
Its an interesting question. I think that if you're going to have more than one person leading, they should typically be leading separate parts of the business (sales / tech).<p>The problem with a single individual managing responsibilities is that there are still plenty of tasks that need to be done so it becomes a question of what you can automate and what you can outsource for as cheap as possible. Basically, good delegation and management skills.
brudgersover 12 years ago
<i>"There is an argument going on at Hacker News about whether you should found companies as a single founder or not, spurred by Ryan Carson."</i><p>This mischaracterizes the dialog.<p>The issue is about a specific type of company, startups, and a specific definition of "startup," that used by venture capital.<p>PG's comments were as narrowly focused as his essays and YC itself. His data set was not the Tech Sector, but a particular type of business.
smoyerover 12 years ago
"If it is true that greater than 70% of all companies are started or owned by one person, you would be able to make the conclusion that more single founders fail than should on average."<p>Not really ... it only indications that more single founders fail to grow fast enough to make Deloitte's list.
MojoJoloover 12 years ago
The information here about a single founder backs the "doing it alone" thing, the top topic here in HN. (<a href="http://ryancarson.com/post/35939367603/you-can-do-it-alone" rel="nofollow">http://ryancarson.com/post/35939367603/you-can-do-it-alone</a>)<p>I'm happy that there are a bunch of single founder companies. I'm planning to start one, as a single founder.