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Digesting Insights From the Data
👋 Hi, I’m Andre and welcome to my weekly newsletter, Data-driven VC. Every Tuesday, I publish “Insights” to digest the most relevant startup research & reports, and every Thursday, I publish “Essays” that cover hands-on insights about data-driven innovation & AI in VC. Follow along to understand how startup investing becomes more data-driven, why it matters, and what it means for you.
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Welcome to another “INSIGHTS” episode where we cover the most interesting startup research & reports from the previous two weeks.
We read all reports, studies, and papers about startups and the wider ecosystem, and condense the most important insights for you.
The only source you need to keep up with data-driven startup insights.
Unveiling the True Faces Behind Unicorn Success
The "Unicorn Founder DNA Report" by Defiance Capital, sheds light on the unconventional profiles of unicorn founders, debunking several long-standing myths. Analyzing over 845 unicorns and 2,018 founders, the report reveals a narrative of resilience, diversity, and ambition driving billion-dollar valuations. Here's what stands out:
Diverse Origins: A striking 70% of unicorns are founded by what the study terms "underdog founders" - a dynamic mix of immigrants, women, and people of colour, marking a shift from the once male-dominated arena.
Educational Excellence: Despite diverse backgrounds, over half (53%) boast degrees from the top 10 global universities, with a significant proportion (49% of CEOs, and 70% of teams) holding STEM degrees.
Fragmented VC Landscape: Contrary to the belief in a VC monopoly at seed stages, the market is highly fragmented. SV Angel and YC lead, but no fund has a significant share, indicating a level playing field for emerging VC firms.
✈️ KEY TAKEAWAY
The report celebrates the rise of 'underdog' founders and signals a paradigm shift in the startup ecosystem. With immigrants and women founders playing pivotal roles in crafting unicorn stories, the narrative is clear: diversity, resilience, and a relentless belief in one’s vision pave the way for monumental success.
STEM Majors Lead the Way to Unicorn Status
The path to becoming a unicorn founder appears to be significantly influenced by one's field of study, with STEM majors taking the lead. A recent analysis underscores the advantage of majoring in STEM fields for aspiring unicorn founders, revealing some compelling statistics about the educational backgrounds of these rare leaders.
Computer Science Reigns Supreme: Majors in computer science are 8 times more likely to launch a unicorn compared to other US undergraduate majors and 5.1 times more likely than the average of all founders of VC-backed startups.
Math and Physical Sciences: Pursuing a major in math makes you 5.6 times (versus all US majors) and 4.0 times (versus VC-backed startup founders) more likely to found a unicorn. Physical sciences majors are not far behind, with a 4.8 and 5.1 times increased likelihood, respectively.
The Least Likely Majors: On the flip side, majors in education, journalism, and health are at least five times less likely than average to become unicorn founders.
✈️ KEY TAKEAWAY
This study suggests a strong correlation between a founder's educational background in STEM and their likelihood of achieving unicorn status. While not the only factor in entrepreneurial success, the choice of major can significantly influence the trajectory of a founder's journey. As the tech industry continues to evolve, the value of technical expertise in founding successful startups is more apparent than ever.
Unpacking Resilience in Entrepreneurship: Concrete Insights from Startup Founders
The qualitative study by Dewi delves into the essence of resilience within the startup ecosystem, offering a granular look at how resilience influences entrepreneurial success through real-world experiences and strategies of startup founders. The findings illuminate the complex interplay between resilience and various facets of startup development and innovation.