Investors generally prefer a cofounder team at seed, and the funding data shows it: solo founders start far more companies than they get funded. Whether solo founders do worse after the money arrives is much less clear. So the solo founder vs cofounder choice should rest on the gaps in your business, with investor taste as a secondary factor.
Why do investors prefer cofounder teams?
Because a team lowers their risk at the stage where the team is almost all they can judge. CRV sums up the reasons: skill coverage, operational continuity if one founder burns out, and less exposure to a single point of failure.
At seed there is no revenue history and no retention curve. The founders are most of the diligence file, so their number and mix carry extra weight. That is why the preference is strongest early. For what investors check in that review, see how investors evaluate a founding team.
Plenty of investors weigh it less. xartup notes that micro-VCs and angel syndicates often back the person, not the structure.
Is it harder to raise money as a solo founder?
Yes. Solo founders made up 35 percent of incorporations in 2024 but closed only 17 percent of VC rounds that year, according to CRV. Put simply, solo founders start companies at about twice the rate they win venture rounds.
The gap is widest at seed, for the reason above. Once a company has traction, investors look at the business: growth, retention, unit economics. The founder count matters less.
If you are thinking of adding a partner to close that gap, read how many cofounders a startup should have first. The case for a pair does not extend to three or four just because more people looks like more cover.
Do cofounder teams perform better after funding?
The evidence is mixed. Startups.com argues the "solo founders fail more often" story isn't well-supported by data, and that success rates are roughly comparable once you control for other factors. Seedblink's summary of the research points the other way, citing studies where multi-founder teams outperformed solo founders on revenue and growth.
Read it this way: an investor's preference for teams is a judgement about risk at the moment of investing. It does not prove that teams build better companies. Use the preference to plan your raise, and use your own situation to decide your structure.
So should you go solo or find a cofounder?
Decide on the business and the people in front of you.
| Your situation | Likely answer |
|---|---|
| You lack a skill the company cannot do without, such as technical depth or selling | Find a cofounder |
| The work needs two full-time people for the next two years | Find a cofounder |
| You can hire or contract for your gaps, and you ship well alone | Stay solo and show investors how the gaps are covered |
| You want a partner mainly so the deck looks stronger | Stay solo until the real reason appears |
If you do stay solo, show what a cofounder would have covered: a strong early hire or advisor in your weak area, a record of shipping, and a plan for what happens if you are out for a month. What makes a founding team investable is a better lens than head count.
If you add a cofounder, how do you make it work?
Build the partnership on purpose. A second name on the cap table covers no gaps if roles are vague, nobody knows who breaks a tie, and the equity split does not match who does the work. That is the most common way a cofounder added for funding backfires.
Agree who decides what, how equity reflects contribution, and what happens at a deadlock before you announce the partnership. A free cofounder alignment check shows where you and a new or existing partner agree and where you have only assumed it. To turn that into one signed document, see how it works.
Frequently asked questions
- Do VCs prefer startups with cofounders?
- At seed, in practice, yes. With little else to judge, investors weigh the founding team heavily, and a team covers more skills and survives one person burning out. It is a preference about risk. Many angels and small funds back the person rather than the structure, and solo founders do raise.
- Is it harder to raise venture capital as a solo founder?
- Yes, especially early. CRV, citing Carta, reports that solo founders made up 35 percent of incorporations in 2024 but closed only 17 percent of VC rounds that year. The gap is widest at seed, when the team is most of what an investor can evaluate, and narrows once traction gives them more to look at.
- Should I add a cofounder just to raise money?
- No. A cofounder added for the pitch deck only helps if the partnership is built well, with clear roles, agreed decision rights and an equity split that matches the work. Without that, the second name on the cap table adds risk instead of removing it, and investors who do diligence tend to notice.
- What do investors look for from a solo founder?
- Evidence that you have covered the gaps a cofounder would cover. That means a strong early hire or advisor in your weak area, a record of shipping on your own, and a clear answer to what happens to the company if you are unreachable for a month.