The journey to securing investment is often a challenging one. But, there’s a strategic move that might just tilt the scales in your favour: teaming up with a co-founder.
I recently spoke with SME Today and explained how having a co-founder in your startup can make your business more appealing to potential investors. Having raised equity investment for my own business, and having supported angel investors with their investments, I’ve seen both sides of the investment table.
As a solo founder myself I enjoy steering my business in-line with my own vision. This is echoed by other solo founders that I work closely with on our Funding Accelerator programme. But, I realise that as my company grows the quantity of decisions to be made may become overwhelming. Having someone to share the decision making with can help relieve those pressures, and may even help obtain a better work-life balance!
How having a co-founder in your startup de-risks investments
Angels like to invest in businesses with more than one founder. This is because for angel investors, it’s all about de-risking their investment. Although investing in fledgling businesses is high risk in its nature, if the investment can be de-risked it gives their capital more protection, and in turn makes the business more appealing. A founding team that has a good mix of skills between them reassures investors, and makes their business more investible.
As well as discussing how having a co-founder in your startup can de-risk the investment for an investor, I also cover how having a co-founder can:
- broaden horizons and help your company grow faster
- help with critical thinking and prioritisation of strategies and plans
- provide stability to the business
I also touch on what to consider when choosing a co-founder.
If you’re a solo founder seeking funding for your startup, it’s worth considering finding a co-founder to improve your investability. If you are a little way off finding a co-founder, an option could be to surround yourself with some great mentors. Our Funding Accelerator program – along with helping you to become “investment ready” in 90 days – also gives you access to a pool of expert mentors who offer one-to-one support and advice, a good interim option until you are ready to find a co-founder.
Further reading
- Choose your startup co-founder wisely
- Find a co-founder and your startup will raise more money
- What angel investors look for in start-ups
Ready to start your funding journey?
- Find out how attractive your business is to investors by answering 20 quick questions
- Bring your funding questions to our next free, online Funding Strategy Workshop
- Want some feedback on your pitch deck? Check out our Funding Accelerator