Researchers have identified three common types of co-creators that can provide substantial support to solo founders.
At first glance, it seems obvious: 80% of all unicorns (billion-dollar companies) launched since 2005 have had at least two founders. Countless well-known companies, like Facebook, Apple, Google, and Airbnb, were started by teams. So, there is plenty of data that shows the benefits of working with a founding team.
One might argue that 20% of the mentioned unicorns, including Dell, Amazon, and eBay, had just one founder.
But I would like to hint at recent research by business lecturers Travis Howell, Christopher Bingham, and Bradley Hendricks. Their research identified three common types of co-creators that are able to provide significant support to solo founders: employees, alliances, and benefactors.
For founders who already have some funding (from savings, a prior exit, etc.), it can often make sense for early employees to serve as co-creators. While these employees will typically expect some equity, the ability to pay a cash salary will enable founders to get access to the talent they need to start their business without giving up a substantial equity stake.
If directly paid support is too expensive, founders can form win-win alliances with existing organizations or companies. For example, a founder gets access to a partner firm’s sales and marketing resources, without diluting his equity. Revenue share is the keyword here.
Last but not least, according to the researchers, there are so-called benefactors: individuals or organizations providing money, and/or connections and respective advice without any reciprocation or compensation.
Co-creators like these can provide many of the same key resources, connections, and ideas as a formal co-founder would, without requiring the founder to give up control or deal with co-founder tensions.
I agree with the three business experts on this. But one should keep in mind that it is not that easy to find these types of co-creators. Thus, solo founders should also think of getting in touch with venture asset managers offering support throughout all phases of business. Offering access to the platform and connecting solo founders with the right co-creators is an additional way that venture asset management can help them set up a successful business.
