Investment in the startups by solo founders

posted by Abishek Muthian Ideator , 1045 days ago , show insights

Retail investment in the startups by solo founders has several problems faced by both the founder and the investor.

  • Bus factor: /problems/294 .
  • Lack of standardized term sheets for solopreneur startups: Current standardized term sheets are made for startups with co-founder(s) and large teams.
  • Investment regulations: Regulations to invest in a startup varies according to the jurisdictions and are often made with large typical startups in mind.
  • 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.
  • 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.
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