💡What used to be taboo only a few years ago, is now a trend on the rise – things for emerging manager to consider when investing in solo founders.
1. Human Capital Evaluation: It is important to understand the reason why the founder is flying solo. Make sure to diligence if the solo founder has challenges attracting talent.
2. Limited Support: Without co-founders, solo entrepreneurs have no one with the same vested interest in the company with whom to bounce ideas off-of and brainstorm.
3. Future Investments: While solo-founded start-ups have been on the rise, they still represent a smaller portion of venture-backed companies, indicating potential challenges in scaling and attracting future investment.
