BETA
This is a BETA experience. You may opt-out by clicking here

More From Forbes

Edit Story

The Ideal Age To Launch A Start-Up Is Older Than You Think

Following
This article is more than 9 years old.

When asked to describe the profile of a typical tech start-up founder, many people picture a hoodie-clad twenty-something, the ink still drying on their computer-science degree. But earlier this year, Bloomberg’s venture capital arm, Bloomberg Beta, commissioned a study to identify the key qualities of start-up founders - and they came up with a very different picture.

The fund's goal was to use this data to identify potential entrepreneurs and build relationships with them before they launched their own start-ups. “Today, in a blink of an eye something can go from two people nobody ever heard of to a significant force affecting business; hence, you have to get involved earlier,” said Bloomberg Beta leader Roy Bahat to The Harvard Business Review.

To conduct the study, Bloomberg Beta enlisted the help of Mattermark, a data research firm. First, Mattermark used the profiles of existing founders to build a model. Second, they analyzed the publicly-available information of 1.5 million professionals linked to tech start-ups (as workers, not founders) in Silicon Valley and New York. And then they pulled that all together to predict who fit the profile of a potential tech entrepreneur, according to a report by BBC News. In the end, the study identified 350 professionals in Silicon Valley and New York “who had not yet started a venture-backed company but we believed would do so,” said Bahat to HBR.

The profile of start-up founders bucked the caricature of the fresh-faced post-grad. Drawing from Mattermark’s findings and Bahat’s previously reported comments, here’s what the study’s start-up founders looked like:

1. They were older. They skewed towards their late 30s and 38% of them were over 40 years old.

2. Many had been at the same job for a long time. “Contrary to conventional wisdom, being ‘stuck’ in the same company or position for a long time (even a decade) does not diminish your likelihood of becoming a founder,” reported Mattermark.

3. They didn't all have computer-science backgrounds. Only 15% had computer science degrees.

4. They were inclined to have business backgrounds. “Management consultants are more than two times more likely to be venture-backed founders than engineers,” reported Mattermark.

5. Close to half (43%) had experience working at a start-up.

6. They weren't all senior leaders prior to becoming entrepreneurs. In fact, two-thirds had not held senior leadership positions.

Follow me on TwitterCheck out my website