
Carta’s data shows solo-founded startups rising from 23.7% (2019) to 36.3% (H1 2025)—a 53% increase in share over six years. The acceleration in 2024-2025 (from 30.5% to 36.3%) coincides precisely with the mainstreaming of AI coding assistants and agentic tools, suggesting a structural shift in startup formation economics.
The Timing Is Not Coincidental
The sharp acceleration from 30.5% to 36.3% in the AI tool era suggests founders who previously needed co-founders for technical capability or operational bandwidth can now substitute AI assistance.
What AI Replaces
Traditional co-founder roles included: technical implementation (now AI-assisted coding), early customer support (now AI chatbots), and operational tasks (now AI automation). The minimum viable team has shrunk to one.
The Implications
If solo founders can achieve what previously required teams:
- More startups can form with less capital
- Equity concentration increases (no co-founder dilution)
- Speed to market accelerates (no coordination overhead)
- Failure modes change (single point of failure, but faster pivots)
The economics of startup formation may be permanently altered by AI capability gains.
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