Unlike a record company, investors don’t ordinarily fund one man bands. There’s many reasons for this, including the dislike of key man reliance i.e. if the founder gets bored and walks then your investment is screwed. However, it also raises questions about why the owner hasn’t been able to persuade anyone else to join them in the endeavour – can’t they persuade anyone of the merits of the idea or is the founder unable to work with others? Neither are great for an investor. It’s also alleged that no one is good at everything and even if that’s not true, can they really do everything simultaneously without compromising on quality?
Someone I met at last week’s ContentMixer event at the Savoy in London suggested to me that entrepreneurship is a lonely affair – well, investors prefer it not to be. As they say on “Who wants to be a millionaire”, would you like to phone a friend?