The Future of Solo Capitalists | The Generalist

Venture firms should aggressively ally with these disruptors. While tier 1 funds will worry more about Tiger Global, solo investors have changed the market’s dynamics. Proactive firms will adapt, empowering these managers and benefiting from their favorable brand and impressive reach.

Established institutional LPs have backed solo GPs. University endowments and other institutional investors have funded several top managers. In doing so, these LPs seem to have made peace with the model’s structural risks.

Creators lead the way. Many members of this movement built their reputation as creators, amassing large audiences in the process. This influence has been translated into securing allocation in competitive rounds. Those that tell powerful stories about their portfolio businesses can drive remarkable results.

They win through speed, empathy, and expertise. By avoiding firm politics, solo investors can move more quickly, committing to a round in hours or days. Many are current or previous operators, giving them empathy for founders’ journeys. Some bring unique expertise to the table, too.