What do investors want in a co-founder?
developer
Investors are those who invest capital into a business with the expectation of getting future financial returns. As they invest their money into the business, they require a better understanding of its financial position. It is necessary to keep track of the growth potential of the company. On the other hand, co-founders are a group of people who set up a business with the help of the founder. They are different from the founder who comes up with an idea for the company with relevant skills, as co-founders may have the skills the founder lacks. Investors want to ensure that the founder and co-founders have relevant industry knowledge. However, young founders without prior experience can also bring up a company to be successful if they have ideas and try their best to realize them.
Investors generally tend to support companies run by a team rather than those run by one person alone. Companies with multiple founders and co-founders are preferable to others, and they are more likely to fund them quickly. Having co-founders also benefits the company in decision making. The decision taken by a single founder will be considered final. Still, if there are co-founders, they can actively help make better decisions. They might come up with more ideas through brainstorming, which will bring in multiple opinions from different people. The balance of founders and co-founders helps the company make the best possible decisions, which increases the investors’ confidence. Co-founders also help in the division of responsibilities. A single founder might not be able to carry out all the duties alone, as it will be challenging to manage. Division of responsibilities helps get all the tasks done quickly and efficiently, without hassle. Co-founders are responsible for many other things altogether, including but not limited to setting up the business, focusing on company goals, tactics, skills, etc. The investors may expect the co-founders to keep the company stable to maximize the profits and minimize the losses. They also want to ensure that they can get proper returns on their investments.