Part 1 -Finding Your Co-Founder:
In the disruptive space, especially, it can be a lonely journey to start a company. The assumption is that you need to be a techie in order to succeed. This is likely due to the fact that many of today’s most successful companies were founded by “techies.” That is an absurd idea. In my opinion, a successful startup needs a mix of technical skills, understanding of the customer’s journey, and business development skills. This means finding a co-founder who can contribute to the company in a way you can’t on your own, but whose skills complement yours.
The bond between co-founders is crucial, so they should always work to strengthen it. If there is no trust between the co-founders, the startup has already failed before it even gets off the ground. It’s also important to find a co-founder who shares your vision for the solution you’re making. Having a Founder’s Agreement in place is a must.
A Founder’s Agreement will list what each party brings to the table (talent, money, sweat equity, etc.), as well as what each founder’s responsibilities are and what will happen if a co-founder doesn’t do their job. The treatment of the co-founder’s shares at the time of exit should be specified in the exit clause. A founder’s agreement is important to avoid dead stock and crises if one co-founder fails to do their part or is no longer a good fit for the company.
