Every entrepreneurial journey is unique. I find the world of startups fascinating because the desire to solve a problem or need—often something you’ve struggled with yourself—is too tempting to resist.
Solving this problem on your own as a lone founder can be daunting, but it can also be a relief. Alternatively, starting a company with a co-founder can be productive, but it can also have its own challenges.
When I started DocSend, I never considered whether I wanted a co-founder because I knew I wanted to build a company with two specific people I personally liked and respected professionally. But for many entrepreneurs, it is not an easy question whether to take on the challenge alone or to have a co-founder to accompany. This is understandable.
Going it alone can give you more control and freedom to lead the company as you see fit. It also means that you are the only person responsible for pitching VCs, running board meetings, staffing teams, and making big decisions.
While a solo founder can hire executives and managers to help with the work and these decisions, a co-founder can balance the leadership team. They can bring different areas of expertise, their own professional network, and share responsibilities.
While the data shows that independent founders raise more money, it is imperative to take a holistic approach to understanding your gaps and how to fill them.
If you’re starting a company or currently running your startup on your own, here are four things to consider when bringing on (or not) a co-founder.
professional knowledge
Every entrepreneur should objectively assess their skills and determine if their capabilities are comprehensive enough to run a business on their own. If you’re not a techie and you’re starting a tech company, you may need to find a co-founder who can fill the void, or at least a strong engineer to lead product development.
Even if you’re a techie and can code from day one, you’ll need to consider other key business areas and decide whether hiring a co-founder with expertise in those areas will get you a viable product, market traction, and revenue fast point.
I reached out to my network to see how they felt about the decision. I recently spoke to Aneto Okonkwo, co-founder and CEO of Chatdesk, about why he decided to bring in multiple co-founders, and he said the different areas of expertise were a big driver.
“I thought about the different capabilities needed to make Chatdesk successful. Since we combine technology and personalized human support, it was important to establish three capabilities: technical, operations, and sales. I knew if everyone could have one region, which will ensure that we can achieve our mission,” he said.
The number of founders on your team can also affect your fundraising success.Our analysis found Individual founders have the highest fundraising success ratesreceived an average of 42 investor meetings and raised an average of $3.22 million, while companies with 4 or more founders received an average of 30 meetings and raised an average of $1.7 million.
While the data shows that independent founders raise more money, it is imperative to take a holistic approach to understanding your gaps and how to fill them.
