WhoBuilt

How to Find the Right Co-founder

Mar 25, 2021· 29 min· 147K views·Watch on YouTube

Speaker

Haguer, a partner at Y Combinator, explains how to find, evaluate, and formalize a co-founder relationship.

Why a co-founder matters

Haguer says co-founders can increase the amount and quality of work through complementary skills and shared problem solving. They also provide peer support through startup stress, and many successful companies, including Apple, Facebook, Google, and Microsoft, began with co-founders.

When to start alone

Haguer recommends waiting for a co-founder by default, but says a solo founder can start if they have strong conviction in the idea and can make early progress independently. Drew Houston built a Dropbox prototype while looking for a co-founder, then reapplied to Y Combinator with Arash.

What to look for and where to meet

Haguer puts stress response, mutual support, and aligned motivations ahead of a perfect skills match. He suggests starting with friends and colleagues, trying projects together, asking trusted contacts for introductions, and meeting people through relevant events and communities.

Test the partnership and agree on roles

Haguer recommends working together for a set period, aiming to build a prototype or pitch customers, then honestly discussing whether to continue. He says 50/50 equity is a good default for early co-founders, and the CEO should be the clear leader for investors; competing for the title is a warning sign.

Formalize the commitment

After deciding to build together, Haguer advises incorporating and setting up vesting so shares are earned over time. He says the trigger is the mutual commitment to make a real attempt at building the company.

Takeaways

  • Choose a co-founder whose response to stress you have seen firsthand.
  • Discuss each person's goals and risk appetite before committing.
  • Work on a project together to test the partnership before starting a company.
  • Use 50/50 equity as the early-stage default, while prioritizing long-term commitment.
  • Agree on a clear CEO and put incorporation and vesting in place once committed.

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