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VCs are avoiding startups with solo founders
Why VCs don't back solo founders, how this solo-founder is building a new cloud, and more...
SearchVentures
May 07, 2025
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VCs are avoiding solo founders
Startups with solo founders make up a quarter of all startups but attract significantly less VC investment compared to those with two or three founders.
Why do VCs prefer teams over solo founders?
This Week’s Trends
VCs are reluctant to back solo founders
How this solo-founder is building a new Cloud
Doordash acquires Deliveroo and more
Read Time 3 minutes
The Startup Trend
VCs are reluctant to back solo founders
While 25% of startups have solo founders, only 18% secure priced VC rounds, and just 12% achieve unicorn status, significantly below multi-founder teams.
> Startups with two or three founders dominate VC funding, capturing 59% of priced rounds and comprising 60% of unicorns, highlighting strong investor preference.
> Investors see multiple founders as lower risk, offering complementary skills, diverse perspectives, and better operational capacity.
đź’ˇ Solo founders face tougher fundraising hurdles due to perceived risks like burnout, narrower expertise, and lower resilience during operational setbacks.
Startup Feature
The Solo-Founder Building a New Cloud
Hivenet is a Geneva-based cloud startup building a new way to store and process data. Founded by David Gurlé in 2022, the startup taps into idle computing power from devices across the world by turning unused storage and processing into a low-cost and greener alternative to traditional cloud infrastructure which is reliant on large data centers.
Earlier this year, Hivenet raised €12 million in Series A funding, bringing its total to €19 million. Investors include SC Ventures and OneRagtime. With over 25,000 users already contributing resources, the startup is aiming to rival large players like AWS and Google Cloud.
The cloud, but Not as We Know It
HiveNet’s model works by aggregating computing power from underused devices. Contributors earn revenue by sharing their processing and storage capacity, while businesses use HiveNet’s platform for data storage and running intensive workloads like video rendering, AI model training, and data analysis.
“Seventy percent of the world’s computing power is unused at any given time. We want to unlock that potential and make the cloud more efficient.”
Because the infrastructure is fully distributed, HiveNet can scale faster and operate with lower energy consumption than traditional cloud providers. Clients retain control through private clusters that offer full transparency into where their data is processed.
The startup’s platform acts as an orchestration layer, intelligently routing jobs across its global network of machines. This gives companies the performance they need without relying on hyperscale cloud monopolies.
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Backing the Solo Builder
David Gurlé built HiveNet without a co-founder, a rarity in deep tech where teams are often formed around technical or scientific expertise. His solo journey reflects a shift in Europe, where more experienced operators are launching complex startups alone and attracting institutional funding.
He previously founded Symphony, a secure messaging platform used by major banks. That exit gave him the track record needed to raise capital for a technical problem few others were solving.
“We are building a cloud where no one owns the infrastructure but everyone benefits.”
HiveNet is building infrastructure that challenges the concentration of power in the hands of a few cloud providers. This mission has drawn interest from both infrastructure-focused funds and climate-oriented investors, who see distributed compute as a way to cut energy use and build more resilient systems.
While solo founders still face hurdles in Europe, investor confidence is growing for those with domain experience and a clear technical vision. HiveNet’s funding shows that European deep tech is widening its definition of what an investable founder looks like.
Sponsored by Ryse
Is this startup the next billion dollar buyout?
Imagine investing in Ring before its $1.2B buyout by Amazon
Or Nest, before Google's $3.2B acquisition.
By the time we hear about industry-changing companies, it’s usually too late. But right now, there’s a smart home startup making their way to homes in America. This tech startup is RYSE, and unlike Ring, you can still invest before their $1.90 round closes May 30.
Like how Ring disrupted home security, this company is revolutionizing smart blinds & shades.
With $10M+ in revenue, 200% YoY growth, and sold in 127 Best Buy stores, they are primed for massive expansion and forecast 5X in revenue this year.
Past performance is not indicative of future results. Email may contain forward-looking statements. See US Offering for details. Informational purposes only.
Headline News
This Week In Startups ✍️
Founders
> DoorDash is acquiring UK-based food delivery company Deliveroo in a deal that values the company at approximately ÂŁ2.4 billion, expanding European presence.
> Hasan Sukkar, founder of hyped UK AI startup 11x, is standing down as CEO, saying “different growth phases demand different leadership strengths”.
> CryoCloud, a Dutch biotech startup, has secured a €2 million Seed funding round to expand its cryo-electron microscopy SaaS platform.
Investors & VCs
> EWOR, a German accelerator which aims to challenge Silicon Valley institution Y Combinator (YC), has raised €60 million to find Europe’s next unicorn founders.
> RockawayX, a European crypto VC firm founded in Prague, has closed a $125 million fund amid renewed interest in digital assets.
> First Momentum, a German deeptech VC firm which invests pre-seed cheques into technical founders, has raised €35 million for its second fund.
Cheers,
Odin Lund & Hari Mohandas
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