Founders vs. Success vs. Home-runs

A student of mine pointed me to this article about who founds companies. It is a well-known fact (or at least lore as I have no reference at hand) that the highest success rate as a founder is with those around age 40 (38 according to the article). At that age, a founder has worked in his or her industry, knows it well, is connected, and probably has a reasonable business idea to begin with.

The article referenced above, however, wrongly suggests the next big-time entrepreneur will be one of those fourty-somethings. Maybe. But statistically, despite the high success rate, not likely. Why? Because business ideas that someone at that age typically comes up with are “reasonable” and “rational” and “rooted in reality”. Because they are based on a lot of experience. Which may well blind the entrepreneur to the more far-out ideas that, if successful, provide the home-runs that VCs are looking for.

Continue reading “Founders vs. Success vs. Home-runs”