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I’ve been thinking about co-founders a lot lately.
In 15 years of building companies, I’ve had >10 different co-founders.
They’ve fired me. I’ve fired them. But I’m still friends with 100% of them to this day.
... 15 Rules on Co-founder Relationships
**Read On**
In 15 years of building companies, I’ve had >10 different co-founders.
They’ve fired me. I’ve fired them. But I’m still friends with 100% of them to this day.
... 15 Rules on Co-founder Relationships
**Read On**
Rule 1: You don’t have to know each other in advance.
@erenbali and @caglaroktay didn’t know me when we started @udemy, but I think all of us would agree the company wouldn’t have happened without any one of us.
@erenbali and @caglaroktay didn’t know me when we started @udemy, but I think all of us would agree the company wouldn’t have happened without any one of us.
Rule 2: Create a pre-nup through role definition.
99% of companies should have a clear CEO. If you are not that person, you report to them.
Co-founders firings should not be done lightly, but if it happens, the CEO decides.
99% of companies should have a clear CEO. If you are not that person, you report to them.
Co-founders firings should not be done lightly, but if it happens, the CEO decides.
Rule 3: Test drive the relationship before committing.
If you have not already worked together, create a trial period. At Udemy, we spent 6 months getting to know each other before we finalized our agreement. At Sprig, we had vesting cliffs in case one of us didn’t work out.
If you have not already worked together, create a trial period. At Udemy, we spent 6 months getting to know each other before we finalized our agreement. At Sprig, we had vesting cliffs in case one of us didn’t work out.
Rule 4: Custom-design equity.
If you have to be equal, you won’t always find the perfect person. If you are unwilling to give out half your shares, you won’t attract the best person.
The right partner is worth their equity. Find the right person and compensate accordingly.
If you have to be equal, you won’t always find the perfect person. If you are unwilling to give out half your shares, you won’t attract the best person.
The right partner is worth their equity. Find the right person and compensate accordingly.
Rule 5: Early Value > Long-term Value
Every co-founder should be able to get their hands dirty and help in the first 18-36 months.
Do not co-found with executives who “need” employees to get shit done.
Every co-founder should be able to get their hands dirty and help in the first 18-36 months.
Do not co-found with executives who “need” employees to get shit done.
Rule 6: Determine the idea before you finalize the co-founders.
Hard to do in practice, but you want co-founders who are jazzed about the idea. If you decide to be co-founders first, you set yourself up for disappointment when the idea and co-founders don’t match.
Hard to do in practice, but you want co-founders who are jazzed about the idea. If you decide to be co-founders first, you set yourself up for disappointment when the idea and co-founders don’t match.
Rule 7: Look for destiny.
There are thousands of potential co-founder profiles. e.g. in product, they can be growth-minded, tools-minded, operations-minded or sales-minded.
Know what your business needs and make sure it feels like your co-founder was “destined” to build this.
There are thousands of potential co-founder profiles. e.g. in product, they can be growth-minded, tools-minded, operations-minded or sales-minded.
Know what your business needs and make sure it feels like your co-founder was “destined” to build this.
Rule 8: Try to predict if they will scale as the company does.
Not all co-founders last forever. Some stay for 3 years, some for 10. It is impossible to predict, but you should give yourself the best chance possible.
Evaluate their personal rate of growth while interviewing.
Not all co-founders last forever. Some stay for 3 years, some for 10. It is impossible to predict, but you should give yourself the best chance possible.
Evaluate their personal rate of growth while interviewing.
Rule 9: Do the First Round Questionnaire.
Spend at least 10+ hours getting to know each other across many levels. @immunoglobulin's guide is fantastic for this: https://firstround.com/review/the-founder-dating-playbook-heres-the-process-i-used-to-find-my-co-founder/
Spend at least 10+ hours getting to know each other across many levels. @immunoglobulin's guide is fantastic for this: https://firstround.com/review/the-founder-dating-playbook-heres-the-process-i-used-to-find-my-co-founder/
Rule 10: Discuss politics.
You can’t legally do this with employees, but co-founders must be on the same page here.
Please don’t take this to mean you have to agree on everything; you don’t. But you have to agree on how it will (or will not) affect your company.
You can’t legally do this with employees, but co-founders must be on the same page here.
Please don’t take this to mean you have to agree on everything; you don’t. But you have to agree on how it will (or will not) affect your company.
Rule 11: Don’t double up.
Trust your co-founders do their job and focus on yours. If they are fundraising, don’t have FOMO about being in the room. If they run product, they should be able to make decisions without having to run them by you.
Reduce bureaucracy early.
Trust your co-founders do their job and focus on yours. If they are fundraising, don’t have FOMO about being in the room. If they run product, they should be able to make decisions without having to run them by you.
Reduce bureaucracy early.
Rule 12: Moral authority.
Do you trust this person to be a moral authority in the company? Don’t give a co-founder title to someone who isn’t strong enough to be seen as a leader.
Whether you like it or not, the title matters and there are no take-backs.
Do you trust this person to be a moral authority in the company? Don’t give a co-founder title to someone who isn’t strong enough to be seen as a leader.
Whether you like it or not, the title matters and there are no take-backs.
Rule 13: NEVER let it get ugly.
This is like the ultimate rule of business. Money is never as important as your happiness, and your reputation matters above all else.
When it gets ugly, your sanity and reputation are in jeopardy. Commit to never letting that happen.
This is like the ultimate rule of business. Money is never as important as your happiness, and your reputation matters above all else.
When it gets ugly, your sanity and reputation are in jeopardy. Commit to never letting that happen.
Rule 14: Back-channel references.
Always back-channel your co-founders. Talk to their worst enemy.
You will invariably see this person’s worst - you need to know what that is beforehand so you can be prepared.
Always back-channel your co-founders. Talk to their worst enemy.
You will invariably see this person’s worst - you need to know what that is beforehand so you can be prepared.
Rule 15: Your role will change.
Startups are wildly unpredictable. Be ready for change - and take it in stride. If you are too proud about title or role or scope, you will be disappointed.
If you’re flexible, then the ride will be thrilling.
Startups are wildly unpredictable. Be ready for change - and take it in stride. If you are too proud about title or role or scope, you will be disappointed.
If you’re flexible, then the ride will be thrilling.
This is timely: @wes_kao and I are looking for an amazing product/engineering co-founder to join us.
Please check this link to learn more: https://docs.google.com/document/d/12QXLbXxTzGQ8-7dGFbQ33UTZZvkjH1ngesue0Rzhhe0/edit
Please check this link to learn more: https://docs.google.com/document/d/12QXLbXxTzGQ8-7dGFbQ33UTZZvkjH1ngesue0Rzhhe0/edit
