Validate your problems, startup ideas to create products which people want http://needgap.com Find your customers by the problem you are solving for them. Mon, 15 Aug 2022 00:03:00 +0000 Investment in the startups by solo founders #investment #business <div>Retail investment in the startups by solo founders has several problems faced by both the founder and the investor.</div><div> <ul> <li>Bus factor: /problems/294 .</li> <li>Lack of standardized term sheets for solopreneur startups: Current standardized term sheets are made for startups with co-founder(s) and large teams.</li> <li>Investment regulations: Regulations to invest in a startup varies according to the jurisdictions and are often made with large typical startups in mind.</li> <li>Uncertainty over the scalability of the B2B startups run by solo founders: Lack of service level agreements ( /problems/153 ) make large businesses hesitant to employ services of smaller startups run by solopreneurs.</li> <li>No investment train when investing in solopreneurs: Typical startups benefit from the investors trying to catch the investment train i.e. When a large name brand investment house invests in a startup, Every other investor tries to invest in that startup due to herd behavior. When unknown individual investors invest in solopreneurs, There's no such investment train to catch.</li> </ul></div> 3 points posted by Abishek Muthian /problems/295-investment-in-the-startups-by-solo-founders-investment-business 295 Thu, 09 Sep 2021 06:27:00 +0000 Very high bus factor among solo founders #riskassesment #business <blockquote><div>The "bus factor" is the minimum number of team members that have to suddenly disappear from a project before the project stalls due to lack of knowledgeable or competent personnel. -<a href="https://en.wikipedia.org/wiki/Bus_factor">Wikipedia</a>.<br></div></blockquote><div><br></div><div>The bus factor is very high among solo founders, solopreneurs and indie hackers because they are often the only person working on the product and when they're unable to continue working due to any number of reasons the product is immediately dead. Investors rarely invest in the startups of solo founders due to this.<br></div><div><br></div><div>Even typical startups run by solo founders with employees, investors are always at the risk of high bus factor because they're often the sole decision maker of the startup, leading to various problems ( /problems/27 ) if they're suddenly incapacitated.</div><div><br></div><div>Straightforward solution to reduce the bus factor is to get co-founders(s), qualified team and hedge the risks. But <a href="https://hitstartup.com/being-single-founder-vs-having-co-founders-in-a-startup/">being a solo founder has its benefits</a> and there's need-gap in solutions to reduce the impact of high bus factor among those who have decided to be a solo founder.<br></div> 3 points posted by Abishek Muthian /problems/294-very-high-bus-factor-among-solo-founders-riskassesment-business 294 Thu, 09 Sep 2021 05:23:00 +0000