Hi Entrepreneurs,
Raising a startup is not easy, specially if you are a Solo Founder.
And to make things worst, Investors shy away from investing in startups.
What to do? What to do? Hmmm….
Today we will be talking about how to make yourself invest-able as a solo founder.
So lets Professor 🎓 Sivesh start with the Lecture ( trust me it won’t be boring :) )
If this 📧 mail was forwarded to you 👇🏻👇🏻👇🏻👇🏻
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Now the lecture 🙂🙂🙂
If you are a single founder and struggling to secure funding?
You're not alone.
Many investors are hesitant to invest in companies with single founders.
They are not to blame, it is their hard earned money.
Their business model is investing and making money out of it.
If they feel they will lose it, they won’t invest.
First let’s see WHY:
Risk: This is what I always tell to founders when they pop up the question, “What if a bus hits the founder on his way to office in the morning, who will be securing my money”. The reason is rude, but truths are always brutal. And it is one of the main reasons why investors might be hesitant to invest in single founders is because there is more risk involved. If something were to happen to the founder (e.g., they get sick, have a personal emergency, etc.), it could have a significant impact on the company. According to data from the National Bureau of Economic Research, companies with single founders are about 50% more likely to fail compared to companies with multiple founders.
Experience: In Pitch Decks, we always see “Founding team is having total experience of 80 years of the Domain”. The more people in the founding team the more number of experience, and experience always adds value. According to data from the Global Entrepreneurship Monitor, companies with multiple founders have a higher rate of success because they are able to bring a diversity of skills and experiences to the table.
Decision making: Try making a travel plan with four of your friends. It will start from GOA TRIP and you will end up going to a place which will be in budget, can be covered in the available time, have almost same amount of fun, and will give you awesome photos for your Instagram. What happened to GOA TRIP? When more brains works together more ideas will come, more problems will come, and after the assessment which will be good to go with everyone, final decision will be made. Result in diverse, workable idea in budget. So the benefits of having multiple founders is that it allows for more diverse perspectives and can help to mitigate the risks of having one person make all of the decisions. According to a study published in the Academy of Management Journal, companies with multiple founders are better able to make decisions and adapt to change compared to companies with single founders.
Future Funding: In best case scenario, as a single founder you are able to raise the fund. Great for you. Even if you have little knowledge of how Investment ecosystem works, you might be aware that once you raise first round, you have to raise second and third round, and that is how investors of first round get their ROI and Exits. Getting set of investors / VCs who are ready to invest in single founders significantly decreases, so there will always be problem with further funding rounds.
Networking and resources: Companies with multiple founders often have a larger network of resources and connections that can help them grow and succeed. This can be especially helpful for companies that are just starting out and may not have a lot of experience or resources.
Stress and workload: Running a company can be a lot of work, and it can be especially stressful for single founders who have to do everything on their own. According to a survey conducted by the Harvard Business Review, single founders reported feeling more stress and having a higher workload compared to founders with a team. And after all founders are human, and every human have a breaking point.
Long-term sustainability: While there are certainly successful companies that have been founded by single founders, it can be more challenging for these companies to scale and grow in the long-term compared to those with multiple founders.
If it is so hard how they hell these single founders able to raise funds?
Ritesh Agarwal - OYO
Mukesh Agarwal - NSE
Kunal Shah - Cred
Nirmit Parikh - Apna
Ilir Sela - Slice
And also you didn’t subscribed this newsletter for knowing the problems.
The best thing about problems are that they have solutions, so
Here are a few tips to consider:
Focus on your strengths: As a single founder, you have the unique advantage of being able to showcase your specific skills and expertise. When presenting to investors, focus on the tasks and responsibilities that you excel at and how they will contribute to the success of your company.
Build a strong team: Even though you are a single founder, you don't have to go it alone. Consider bringing on advisors, mentors, or part-time team members to help support your business. This can help to mitigate some of the risks associated with being a single founder and show investors that you are committed to building a strong team.
Show your resilience: Investors want to see that you are able to handle challenges and setbacks, and that you have the determination and resilience to keep pushing forward. Share examples of how you've overcome challenges in the past and how you plan to navigate any future obstacles.
Demonstrate your expertise: As a single founder, you are the face of your company and the primary source of knowledge and expertise. Use this to your advantage and show investors that you are the best person to lead your business. Share your industry knowledge and experience, and be prepared to answer any questions they may have.
Have a clear vision: Investors want to see that you have a clear and realistic vision for your company. Make sure to articulate your goals and how you plan to achieve them. This will help to build confidence in your ability to lead your business to success.
As a single founder, it's important to be proactive and strategic when it comes to presenting your business to potential investors.
By following these tips, you can demonstrate to investors that you are capable of being a successful single founder and that you are committed to building a strong and sustainable business.
Hope this will help you in you Startup Journey.
Cheers!!!!
Sivesh
Founding Partner : O2 VC Fund
Founder - Startup Monk
The section which you will be looking forward in every mail. Resource Center:
Not to miss resources:
The YC Founder Directory
Discover the 9,000 founders who went through YC. Discover YC founders by batch, industry, region, and background. For prospective founders who are looking for inspiring leaders, here is a way to discover founders who have had experiences that reflect your own and learn more about their founder journey.
🚨🚨 Webinar Alert:
This week's session The Art & Science of Fundraising will consist of:
- Right time for Funding
- Type of Investors
- Type of funds
- Documents Required
- How to identify Investors
Here is the link with all the details: https://rzp.io/l/1V7ne7Zjb
It is not free, but we are not putting any number. Pay what you think it is worth. It can be INR 5 or INR 500.
Register Now as we will be taking only the first 100 participants ( 50 taken yesterday).
To add, I will also be throwing in Bonus, Bonus which you can use and not for the sake of other people out there: Financial Model Template with tutorial ( can be used by Startup and MSMEs ).
nice post