YC
How to Find the Right Co-founder
@ Y Combinator
03/26/21
Takeaways
HT
Harj Taggar
03/26/21
@ Y Combinator
Finding a co-founder is essential because it allows you to share the workload and responsibilities of building a startup.
HT
Harj Taggar
03/26/21
@ Y Combinator
You really want a co-founder when you're starting a company for three main reasons: increased productivity, moral support, and a pattern of success among successful startups.
HT
Harj Taggar
03/26/21
@ Y Combinator
Having a co-founder allows you to divide work, leading to more and better quality output, especially if they have complementary skills.
HT
Harj Taggar
03/26/21
@ Y Combinator
Startups are an incredibly intense journey, and having a co-founder provides moral support during tough times, helping to balance each other's emotional highs and lows.
HT
Harj Taggar
03/26/21
@ Y Combinator
The best co-founder relationships help even out the emotional rollercoaster of a startup, providing support when one founder feels down or overly optimistic.
HT
Harj Taggar
03/26/21
@ Y Combinator
While hiring employees can increase productivity, you don't get the same emotional support from them as you do from a co-founder, who is equally invested in the startup's success.
HT
Harj Taggar
03/26/21
@ Y Combinator
Successful startups like Apple, Facebook, Google, and Microsoft all had co-founders, highlighting the importance of having a partner in the early stages of a company.
HT
Harj Taggar
03/26/21
@ Y Combinator
If you're eager to start a company but don't have a co-founder, you should ideally wait until you find one, as having a partner provides significant benefits.
HT
Harj Taggar
03/26/21
@ Y Combinator
Single founders can succeed if they have a strong conviction in their idea and can make progress without a co-founder, often being technical enough to build a prototype themselves.
HT
Harj Taggar
03/26/21
@ Y Combinator
The best single founders are productive in building their product and also actively search for potential co-founders while making progress on their idea.
HT
Harj Taggar
03/26/21
@ Y Combinator
When considering a co-founder, it's crucial to understand how they handle stress, as startups are incredibly stressful and you need someone who can support you through tough times.
HT
Harj Taggar
03/26/21
@ Y Combinator
It's important to know a potential co-founder's goals and values for starting a company to avoid conflicting motivations that could hinder the startup's success. If your co-founder prefers a slow and steady approach while you aim to take the company public and are willing to take risks, those differing motivations can lead to inevitable conflict. It's crucial to have a conversation about your goals and values to ensure alignment.
HT
Harj Taggar
03/26/21
@ Y Combinator
Having a co-founder with complementary skills is important. For instance, if you're great at sales, ideally, your co-founder should excel at product development and coding, allowing you to divide and conquer tasks effectively.
HT
Harj Taggar
03/26/21
@ Y Combinator
It's more important to work with someone you like and trust than to find a co-founder with the perfect skill set. If you have a strong working relationship, you can hire to fill any skill gaps later.
HT
Harj Taggar
03/26/21
@ Y Combinator
When looking for co-founders, start with people you already know, such as friends and colleagues. Ironically, the best time to find a co-founder is often when you're not actively seeking one.
HT
Harj Taggar
03/26/21
@ Y Combinator
Instead of immediately searching for a startup idea and co-founders, focus on collaborating with people on projects. This approach allows you to build relationships and discover who you work well with, which can lead to future co-founding opportunities.
HT
Harj Taggar
03/26/21
@ Y Combinator
Projects you work on in your spare time can lead to great startup ideas. Many successful companies, like Facebook, began as projects during college or early careers.
HT
Harj Taggar
03/26/21
@ Y Combinator
If you're looking for co-founders, make a list of people you know who you think would be great co-founders. Start from the top of the list and ask each person to meet for coffee to discuss the possibility of starting a company together.
HT
Harj Taggar
03/26/21
@ Y Combinator
If someone declines your offer to co-found a company, ask them who they would consider as potential co-founders. This can help expand your network and lead to more opportunities.
HT
Harj Taggar
03/26/21
@ Y Combinator
If you're looking for a co-founder, attend events related to your interests, such as developer meetups or hackathons, to meet like-minded individuals.
HT
Harj Taggar
03/26/21
@ Y Combinator
When searching for a co-founder, actively seek out people with similar interests to increase your chances of finding a good fit.
HT
Harj Taggar
03/26/21
@ Y Combinator
To test the compatibility with a potential co-founder, allocate a specific time to work together on a project and set a deadline to evaluate your collaboration.
HT
Harj Taggar
03/26/21
@ Y Combinator
It's important to have an honest conversation about whether you both enjoy working together after your trial period.
HT
Harj Taggar
03/26/21
@ Y Combinator
When deciding on equity, start with a 50-50 split, as both co-founders are likely to contribute equally at the beginning stages of the startup.
HT
Harj Taggar
03/26/21
@ Y Combinator
If one co-founder has been working on the idea longer, it may be reasonable to adjust the equity split, but avoid short-term optimization that could harm long-term motivation.
HT
Harj Taggar
03/26/21
@ Y Combinator
Deciding who will be the CEO is crucial; ideally, it should be someone who can effectively communicate with customers and investors.
HT
Harj Taggar
03/26/21
@ Y Combinator
If both co-founders want to be the CEO, it may indicate a lack of compatibility, and it's better to avoid starting a company together.
HT
Harj Taggar
03/26/21
@ Y Combinator
Once you've decided on a co-founder, formalize your partnership through legal incorporation and a vesting agreement to ensure shared commitment.
HT
Harj Taggar
03/26/21
@ Y Combinator
The transition from working informally to formalizing your startup should happen when both co-founders are committed to building the company together.
HT
Harj Taggar
03/26/21
@ Y Combinator
Finding the right co-founder involves a mix of personal compatibility and shared vision for the startup's future.