Ask HN: How to overcome the “You need a co-founder” objection?

#1

Post by solo1preneur » Sun, Jul 22, 2018, 6:55 PM UTC

I started a company last year after moving to a new area (mid-west). I didn't have the relationships or network established to find the perfect co-founder. I decided that waiting to find the perfect co-founder was not a valid excuse for delaying the product or giving up. Over the past 8-10 months I've grown our company (a social shopping app) to over 30,000 users and $500,000 in sales.

We're currently raising a seed round to help us continue our growth and build out a team. Investors love the product, upside, and vision, but they hate the fact that I don't have a co-founder.

My opinion (open to having it changed):

We've outgrown the need for a co-founder, and I think it would be a huge risk to bring one on at this stage. I would much rather raise money with the equity I'd give a co-founder, and build out management, marketing, and engineering teams.

Questions:

- Are you a solo founder? If so, how do/did you handle this objection?

- Is it common/logical for a co-founder to come on after a product is in the market and gaining traction?

Re: Ask HN: How to overcome the “You need a co-founder” objection?

#2

Post by mtmail » Sun, Jul 22, 2018, 7:34 PM UTC

I agree the title co-founder is obsolete after a year and proven business model. Clearly the new person starts with less risk, less equity a couple of less major decisions to make. Consider the title only if you know somebody you absolutely trust or can promote e.g. your first employee to that role.

Investors are probably looking for to minimize risk in case you become a liability. Bus factor (death, coma) is extreme but how about severe lack of motivation, way too much tasks for one person (un-doable) or burn out? On the other hand they simply might (secretly) object to the number of shares you'll hold and try to spread that to more people, e.g. to get you below 50%.

Re: Ask HN: How to overcome the “You need a co-founder” objection?

#3

Post by galaxyLogic » Sun, Jul 22, 2018, 7:48 PM UTC

Co-founder is just like an investor (except they will typically also invest their work). The later in game you get your investors a better valuation your company presumably has by then and you get more money for the same share of your company you give them.

Re: Ask HN: How to overcome the “You need a co-founder” objection?

#4

Post by throy3948958 » Sun, Jul 22, 2018, 10:44 PM UTC

I read this a while back on hacker new. It was advice about being a small startup but I think it applies here as well. Pretend to be a establish company and not a startup and people will stop questioning you. People are naturally uneasy with startups because they die so often. That’s why their reflex is to question your founder situation even though they know very little about your company financial. I suspect if you pretend to be a more establish company, they will stop asking.