I am a solo entrepreneur from India with decent work experience. I am working on an innovative idea of a technology product that has the potential to make it big in the market. My concern is that how difficult is it to raise funding if I don’t have any partners in the business?
Yes, as my fellow commenters have said, it would be very difficult especially if this is the first time you’ve gone out on your own. VCs fund teams, not ideas nor individuals. Why?
VCs fund teams, not ideas nor individuals. Why?
- Any idea needs to be exploited on so many levels and with much expertise
- Any founder needs a team to help him do that
- Scaling from a small success to a large one is almost impossible, on your own
- VCs seek blue sky and high returns – if everything favours you and your product, you may have a 10 million dollar company however for most VCs that’s too small.
What you probably should be looking for is a strong player in the same sector and chase them to license your product. After all, is that the only good idea you will ever have?
Following your first successful licensing deal, the next time you pop out a winning idea, you’ll already have the respect of the sector and more importantly the cash to fund that product.
I hope that helps
It’s possible, but it’s really hard.
I raised a small angel investment as a solo founder.
The short answer is…. very very hard. Being a founder is extremely hard work and you need to have someone in the trenches, fighting with you every day to make your company a success. At some point things will go wrong and a company is far more likely to survive hardship with a very strong cofoudning team. Investors want to know their investment will succeed and pay back 10x the money they put in. If you’re alone and give up, they will lose their money.
Also, it is almost impossible for a founder to have all the requisite skills and personality traits to create a profitable business. This requires technical, operational, visionary, design, sales and marketing disciplines. A cofounding team of 2-3 will be far more likely to have a broader range of skills and therefore are far more investable.