Do you need a cofounder?
Happy Sunday!
My wife forwarded me an email from the founder of Cladwell. To be honest, I have no idea what Cladwell does, but I loved her story and linked it here.
This week at Bullpen, we …
Hired an additional account manager (welcome Scott!)
Inked a big marketing partnership with CRE Daily
Practiced our sales process … a lot … iron sharpens iron.
We’ve filled 10 roles so far this month. If this was a non-holiday month, we’d be on track for our best month ever. Congrats to the team! 🎉
I’ve recently had a few friends ask about my decision to not pursue a cofounder, so I’ve dedicated today’s newsletter to my “cofounder journey.” Specifically …
2 good reasons to have a cofounder
Why I wanted a cofounder (… not a great reason)
Tips when considering a cofounder
☝️ But first … if you’re new here and find this stuff interesting, subscribe below! I send one email weekly - no junk.
Many of you already know that I’m a solo founder. However, there was a time when I desperately wanted a cofounder …
2 good reasons to have a cofounder
1. You need to fill a skills gap
The most common reason for a cofounder is to fill a technical skill gap. For example, if you want to build a software product, don’t know how to code, and can’t afford to pay a developer, then you’ll need a technical cofounder to help build the product.
2. Comradery
Building a company is full of highs and lows. It’s fun to have someone to celebrate with when you’re on the mountaintop, and it’s helpful to have someone who can pull you out of the valley.
Why I wanted a cofounder (… not a great reason)
When I left corporate to be a real estate investor (a few years before starting Bullpen), finding a cofounder was not on my radar. Sure, it would have been great to have an extra hand, but I had confidence that I could figure it out on my own.
However, when I pivoted to Bullpen, I had my eyes set on joining Y-Combinator, Techstars, or 500 Startups. As a semi-technical cofounder, I knew that I needed a true technical cofounder to have a chance at being accepted into one of these programs.
Additionally - our web app was rough looking, and I wanted help from an expert.
Through a friend at my coworking space, I met Roger, a Chief Technology Officer looking for another project. Roger checked all the cofounder and CTO boxes. He had a ton of technical experience at other startups and had built several web apps from the ground up.
I gave Roger stock options that equated to 10% of the business, which at the time was “good enough” for Y-Combinator to consider him a cofounder of the business.
Roger was a great partner. He was easy to work with and built the infrastructure for a first-class product. However, I shouldn’t have sought a technical cofounder to polish a web app prior to achieving product-market fit. Additionally, getting into an accelerator program is a dumb reason to find a cofounder.
I should have continued to pursue product-market fit with the no-code app before hiring a technical team.
The result? Roger moved on to a different startup, and I terminated our engineering team. Following my cofounder attempt with Roger, I decided to get comfortable with being a solo founder.
Lesson Learned: While there are pros to having a cofounder, you don’t need one to build a big business.
Tips when considering a cofounder
Caveat - I don’t have a cofounder, and so I’m underqualified to give advice on confounder relationships.
However, I know a lot of founders, and the following are a few tips that I’ve picked up from their cofounder relationships.
1. Don’t go 50/50
Cofounder relationships can be messy when things are 50/50. Big decisions can get stuck in gridlock. One partner should have more equity than the other. Be sure to consider the impact of board seats.
2. Equity is like marriage
When you give someone equity in a business, you are marrying them. Cofounders with material equity stakes in your business cannot easily go away. Keep this in mind when choosing a cofounder, and don’t make the decision lightly.
3. Vesting is your friend
If you’re bringing on a cofounder after launch, be sure to vest the person’s equity. I like the traditional 4-year vesting schedule with a 1-year cliff.
4. A bad relationship can kill a good business
Self-explanatory - I’ve seen several good businesses die because cofounders couldn’t get along.
That’s all for this week! Let me know your thoughts on cofounders. What did I miss?
✌️📤
Tyler
Founder @ Bullpen