The More the Merrier: Two-Founder FinTech Startups Are 2X as Likely to Get Funded Against One-Founder FinTech Startups


In the current day and age, the startup ecosystem has brought in a new wave of innovation into the world of business. Across industries, technocrats/businesspeople/domain experts are now working together to explore and solve hundreds of pain points associated with the traditional way of doing business. Financial services industry is no exception as it continues to witness the exponential rise of FinTech startups.

Every year, thousands of FinTech startups are founded around the world across 50+ sub-segments, democratizing innovative technology and improving the experience with the financial services industry for billions. Many of these startups are getting significant traction from both consumers and banks/incumbents. However, one of the biggest challenges these startups have to face on their quest towards scale is funding.

Funding is one of the most (if not the most) important drivers of a startup’s growth. While there has been a significant democratization of financing with crowdfunding, debt, grants, ICOs, etc. coming into the radar, VC funding continues to remain a big frontier for these startups. At MEDICI, as we continue to track 11,700+ FinTech startups and monitor their growth, we see a major trend in startup financing patterns: the number of founders in any startup has a significant correlation with their funding.

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Our analysis of 11,700+ FinTech startups, out of which 4,000+ are funded, revealed that a two-founder startup has an almost 2X success rate of getting funded (50.8%) than a one-founder startup (25.6%). The likelihood of getting funded continues to grow even further for 3-4 founder startups (60%). However, as the number of founders increases beyond five, the success rate of the startup getting funded tends to decrease.

Another interesting trend here is that the average funding value for these categories of startups (with 1, 2, 3, or 4 founders) is very similar (between $25 million and $30 million), highlighting that once they get the desired VC recognition, the product/service and innovative capabilities drive the value of investments they receive.

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Additionally, one-founder and two-founder startups together represent ~75% of the total number of funded FinTech startups in the MEDICI database, with their respective shares being 36% and 39%, respectively. However, for the one-founder category, in particular, this is due to a very high number of startups in this category (5,800+).

Diwakar Mandal


Diwakar is a FinTech enthusiast and an avid researcher who spends his time learning and writing about market trends, traction and disruptions in the industry. He has been active in the financial services consulting space for over four years.