Startup

Is a co-founder necessary for raising capital?

Bharat Reddy I am dynamic and have plenty of ideas

January 28th, 2017

Most of the times we hear that most VCs dont trust single owners, and usually look for startups with co-founders. why is this the case, there have been instances that co-founders have had differences and startup failed.

David Eedle CTO and Co-Founder @ParentPaperwork.

February 2nd, 2017

Bharat


It is true that investors almost always want to see more than one co-founder, and in my experience, less than 4. EG 2 or 3 is a good number.


I think there are a several reasons:

  • It is very unlikely one co-founder will have the combination of skills, engineering, marketing, fundraising etc. Which is why you see matching events for founders to meet potential co-founders with complementary skills
  • One person cannot physically do everything. There are not enough hours in the day.
  • Bing a sole founder is a very very lonely experience. You need a shoulder to cry on, someone to bounce ideas off, to parse the issues with.
  • In a single founder business if for some reason they cannot continue (health, change of heart etc) the business folds. In a multiple co-founder environment the business is larger than one person and thus more stable.


I believe most accelerators and incubators for these and probably other reasons do not like single founder businesses.


David



Ib Warnerbring Co-founder, UI/UX designer, full-stack developer

February 3rd, 2017

If you're a sole founder, the investment is in you as a person. Everything is carried on your shoulders. What happens if you get sick? No co-founder to carry the burden, everything is put on hold. This is quite high risk, as opposed to a partnership or team where responsibility is shared and decisions are usually team-based instead of originating from a single mind.

erik

February 21st, 2017

VCs are unimportant. If your project makes sense, they will come to you and try to look their best for you to accept them in. If it doesn't, no amount of additional make up will make you attractive to them. Hence, VCs are unimportant.