Solo Founder Fundraising: Overcoming the Bias
Written by Harry Prabandham
Curated by Rubric Financial
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The Solo Founder Bias Is Real
- VCs will say 'we don't invest in solo founders,' citing data that co-founded companies perform better
- The reality: VCs invest in co-founded companies more often, then point to their portfolio and say 'See? Co-founded companies perform better!' It's survivorship bias disguised as data
- VCs prefer co-founders because it's easier for them: built-in replacement if one leaves, shared blame if the company fails, less key-person risk
- Some of the biggest outcomes were solo founders: Oracle (Ellison), Dell (Dell), Bumble (Wolfe Herd), Alibaba, Tencent
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About the author
Harry PrabandhamFounder & CEO
Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.
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