Many investors avoid investing in startups with a solo founder.

Here are some reasons why:

The company is at risk in case something happens to the founder.

There’s no one there to pick up the business.

The lack of additional founders often means the company has limited growth potential.

It takes multiple skills and people to grow a business.

It takes longer for the startup to accomplish the work because there is only one founder.

The solo founder startup has fewer family and friends for funding.

Early-stage funding is built on the founders’ network.  

The fundraising takes longer as there’s only one founder to hold the meetings.

Multiple founders can cover more ground in following up with investors.

The startup has limited resiliency.

With more founders comes a stronger base to lead the company.

For startups with a solo founder, consider building a more robust team around the founder to avoid these issues. 

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.