Solo GPs (the sole general partner of a fund) are a unique and growing breed of venture capitalists. Unlike larger venture capital firms, solo GPs manage their own investment funds independently, without the backing of a larger organization. While solo GPs may have smaller teams and fewer resources, they offer unique strengths and benefits to startups.
They are often more nimble, able to make faster investment decisions and move more quickly to support portfolio companies. They may also have more flexibility in terms of investment focus, as they are not beholden to the constraints of a larger firm. However, solo GPs also face challenges such as limited resources and networks compared to larger firms, and they may need to work harder to build credibility with investors and establish their reputation in the industry. Despite some challenges they may face, solo GPs are increasingly playing an important role in the venture capital ecosystem, providing a valuable source of funding and support for startups across various industries and stages of growth.
Investment Focus of Solo GPs
The investment focus of solo GPs varies widely depending on the individual investor’s background, interests, and expertise. Some solo GPs may specialize in a particular sector, such as healthcare or fintech, while others may focus on a specific stage of the startup lifecycle, such as seed or early-stage investing. Additionally, some solo GPs may have a geographic focus, investing primarily in companies in a certain region or market.
For startups seeking funding from solo GPs, it is important to understand the individual investor’s investment focus and determine whether their startup aligns with that focus. This can help increase the likelihood of a successful investment and ensure that the startup receives the support and resources it needs to succeed.
Resource: You can filter through our Connect Investor Database based on these focuses
Raising Capital from Solo GPs Versus Traditional VC
Solo GPs and traditional VCs differ in several ways when it comes to the investment process, including how they source deals, conduct due diligence, make investment decisions, and approach risk and portfolio management.
- Sourcing deals
- Traditional VCs often have larger teams and more resources, which allows them to source deals through a wider variety of channels, including conferences, events, and partnerships with accelerators and incubators. Solo GPs, on the other hand, often rely more heavily on their personal networks and referrals from other investors.
- Due diligence
- Traditional VCs often have larger teams and more specialized expertise, which allows them to conduct more detailed and comprehensive due diligence on potential investments. Solo GPs, on the other hand, may have to rely more on their own knowledge and experience when conducting due diligence, which can make the process more time-consuming.
- Investment decisions
- Traditional VCs often have more rigorous investment decision-making processes, which may involve multiple rounds of pitches, due diligence, and review by investment committees. Solo GPs, on the other hand, may be able to make investment decisions more quickly and independently, given their smaller team and more streamlined decision-making process.
- Risk management
- Traditional VCs often have a more diversified portfolio, which can help mitigate risk. They may also have more resources to devote to risk management and monitoring of portfolio companies. Solo GPs, on the other hand, may take a more hands-on approach to risk management, given their closer involvement with their portfolio companies.
- Portfolio management
- Traditional VCs often have larger portfolios, which can make it more challenging to provide individualized attention and support to each portfolio company. Solo GPs, on the other hand, often have smaller portfolios, which allows them to provide more personalized attention and support to each investment.
Overall, the differences in the investment process between solo GPs and traditional VCs often stem from differences in team size, resources, and investment focus. Traditional VCs may have more specialized expertise and more resources to devote to due diligence and portfolio management, while solo GPs may take a more hands-on approach and rely more heavily on personal connections and networks when sourcing deals.
Benefits of Solo GPs
Raising capital from a solo GP can be a different experience for a founder compared to raising capital from a larger venture capital firm or other types of investors. Some of the key differences and benefits include:
- Personal relationship
- With a solo GP, the founder will likely have a more personal relationship with the investor. This is because the GP is typically the sole decision-maker and has a more hands-on approach to working with their portfolio companies.
- Easier access
- It may be easier for founders who are just starting out or who have limited connections in the industry to get access to Solo GPs. They may also be more willing to take a chance on early-stage startups that have not yet established a track record.
- Long-term partnership
- Solo GPs often view their investments as long-term partnerships, rather than just financial transactions. This means that the GP may be more invested in the success of the startup and more willing to provide ongoing support and guidance.
- Faster decision-making
- Solo GPs often have a shorter decision-making process compared to larger firms, as they don’t have to go through multiple layers of approval. This can be beneficial for founders who need to move quickly to secure funding.
- Smaller funding amounts
- Solo GPs typically manage smaller funds compared to larger firms, so they may offer smaller investment amounts. However, this can be beneficial for early-stage startups that are not yet ready for large rounds of funding.
- More flexible terms
- Solo GPs often have more flexibility in terms of investment focus and deal terms. They may be more willing to invest in unconventional or niche markets and may be open to negotiating terms that are more favorable to the founder.
While solo GPs can offer many benefits to founders, they also have limited resources compared to larger firms. This means that founders may need to be more self-sufficient and may not receive the same level of support and resources that they would from a larger firm.
Solo GPs to Watch
Underline Ventures
GP: Bogdan Iordache
About: Underline Ventures partners at the earliest stages with Eastern European founders building high-growth startups with global ambitions
Thesis: We believe founders should be in control of the company they are building. We subscribe to their strategy and align our interests for the long term, while providing a needed critical view. And, if things don’t go as planned, which they often do, we help them through thick and thin.
Investment stages: Pre-Seed, Seed,
Remote First Capital
GP: Andreas Klinger
About: A group of remote founders, operators and early investors investing in the next generation of remote work.
Thesis: First investor in ideas by global talent going after global opportunities.
Investment stages: Pre-Seed, Angel, Early Stage
Wischoff Ventures
GP: Nichole Wischoff
About: Wischoff Ventures invests in early stage, high growth technology companies bringing massive offline industries online.
Investment stages: Pre- Seed and Seed
Coelius Capital
GP: Zach Coelius
About: Coelius Capital provides entrepreneurial early-stage capital for technology startups.
Investment stages: Pre-Seed, Seed, Series A
Streamlined Ventures
GP: Ullas Naik
Location: Palo Alto, California, United States
About: We are a seed stage investment firm rooted in the belief that the founders of companies are the true heroes of entrepreneurial value creation in our society. We are passionate about working with visionary founders to help them create exceptional companies and help them capture as much of that value for themselves as possible – they deserve it! If we stay true to our beliefs and we are good at what we do, then we will benefit too. Our style of engagement with all our stakeholders focuses on low ego behavior, mutual respect and clarity of thought. We seed invest in visionary founders who are building the next generation of transformational technology companies.
Investment stages: Series A, Seed
Buckley Ventures
GP: Josh Buckley
Location: San Francisco, California, United States
About: We partner with entrepreneurs to build ambitious technology companies
Investment stages: Seed, Growth
Anamcara
GP: Annelie Ajami
About: Anamcara is a pre-/seed stage fund investing angel-size checks in B2B companies across Europe. We are reimagining the future of commerce by investing in companies that are leading the new wave of business technologies.
Thesis: Anamcara means ‘soul friend’, a person with who can share anything with without judgment. Our mission is to find the best founders and to build meaningful partnerships to help them achieve greatness.
Investment stages: Seed, Pre-Seed
Buckley Ventures
GP: Josh Buckley
Location: San Francisco, California, United States
About: We partner with entrepreneurs to build ambitious technology companies
Investment stages: Seed to Growth
Stellation Capital
GP: Peter Boyce II
Location: Brooklyn, New York, United States
About: Stellation’s mission is based on the belief that communities of learning, mission-driven, talent magnets shape the future of technology in service of improving human livelihood. We bank on people because we believe they are the fundamental atomic units of every successful company, even and especially at their earliest stages.
Investment stages: Seed to Growth
D2 Fund
GP: Amory Poulden
Location: London, United Kingdom
Thesis: Technical founders building capital efficient businesses
Traction metrics requirements: No, although we prefer to see some signs that you have built a first version of your product. Sales carry enormous weight.
Investment stages: Pre-Seed, Seed
Zeev Ventures
GP: Oren Zeev
Location: Palo Alto, California, United States
About: Zeev Ventures is an early-stage venture fund that invests in technology, financial, e-commerce, and consumer service sectors.
Investment stages: Seed and Series A
Beyond Capital
GP: Gloria Bäuerlein
Location: Berlin, Germany
About: We are a €21.5M angel-operator fund dedicated to partnering with exceptional European pre-seed and seed founders who aspire to build transformational B2B companies.
We aim to support you like a founding team member, not like another investor, even if it means negotiating against ourselves.
We work tirelessly to support you on your journey, connecting you with early customers, world-class talent, and global investors. We strive to be the highest value per euro invested on your cap table.
We collaborate with other investors and will help you build an exceptional support group, optimising for your success and without our own agenda.
Investment stages: Pre- Seed and Seed
Air Street Capital
GP: Nathan Benaich
About: Air Street Capital is a venture capital firm investing in AI-first technology and life science companies. We invest as early as possible and enjoy iterating through product, market and technology strategy from day 1.
Thesis: AI-first technology and life science companies.
Investment stages: Pre-Seed, Seed
No Label Ventures
GP: Ramzi Rafih
Location: London, England
About: No Label Ventures (NLV) is a European early-stage VC fund built to capitalise on the over-performance of immigrant founders.
NLV backs exceptional immigrant founders from Day 1, helps them with visa and immigration, as well as introductions to clients and downstream funding.
Investment stages: Early Stage
Nomad Capital
GP: Marc McCabe
About: Nomad Capital is a seed stage fund focused on investing in emerging companies building marketplaces and B2B software. Nomad is founded by Marc McCabe who previously worked at Google, SV Angel and was an early employee at Airbnb where he led numerous projects including Airbnb for Work and Samara. Since leaving Airbnb in 2018, Marc has been angel investing and supporting clients with fundraising, business strategy, hiring and organizational design.
Investment stages: Seed
Curious Capital
GP: Andrew Dumont
Location: Seattle, Washington
About: Since 2017, and long before that as operators, we’ve been bettering the odds for companies we work with.
We do this as minority investors in our seed companies, majority owners in the companies we operate, and occasionally with outside companies we advise and consult. Every company we support benefits from our scaling machine.
Curious was founded by Andrew Dumont, a former technology CEO with nearly 20 years of hard-earned experience operating and scaling early-stage companies.
Thesis: As investors and operators, we join you in the trenches to better the odds. Curious has three distinct pillars. An investment arm that supports seed-stage companies, a holding company that operates majority-owned businesses, and a machine that helps them reach scale. We’re the empathetic partner you’ll want on your cap table and in your corner.
Investment stages: Seed
Pretiosum Ventures
GP: Yana Abramova
About: We invest in the Future of Businesses, Web2 and Web3 Infrastructure your company should care about.
Investment stages: Pre-Seed, Seed
20VC
GP: Harry Stebbings
About: Building the next great financial institution at the intersection of venture capital and media. 20VC raised $140M across two separate vehicles from some of the most renowned limited partners in venture including MIT, Harvard, Sequoia Heritage, and RIT Capital Partners. Early breakout investments include BeReal, Sorare, Linktree, Nex Health, Merge API, Linear, TheyDo.io, and many more.
Investment stages: Pre-Seed and Seed
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