What to Look for in A Co-Founder
Advice to student founders, from a student-run VC fund
The first thing a VC looks for in a company is a strong management team. This is even more important for student founders seeking pre-seed funding. Without comprehensive financial metrics or developed products, VC’s must be convinced that the founders have the resolve and ability to make their vision a reality.
A good idea without smart backing will only go so far.
This is not something you have to do alone. In fact, there is a strategic advantage to finding the right co-founder. According to data compiled by Startup Genome, a policy advisory and research firm, solo founders take 3.6 times as long to scale their companies compared to startups with two founders. So, how do you find the right cofounder?
- Choose Someone You Get Along With
In many ways, a startup is like a group project. Most of us have experienced being put in a project group where we know we’ll have to do all of the work. A cofounder is more than just a partner that you can consistently rely on to get their work done and add real value to your company. It’s also a partner you need to like. Keep in mind that you might be spending 40+ hours a week over multiple years with this person. It is critical that you can work effectively and positively with your cofounder, through the good times and the bad. Are they in it for the long-haul? Are they calm under pressure? Do they have the right mentality for start-up work? (Keep this last question in mind for the next point).
Remember, choosing a friend can be useful for finding a partner you know you’ll get along with, but make sure they’re the type of person you’d also work well with. Ensure you have the same ends in mind. Nothing is worse than losing a cofounder and a friend at the same time. Alternatively, consider an acquaintance who you’ve worked well with in the past, whether in a professional or internship setting or in a relevant class or club.
2. Choose Someone with the Thirst to Improve
Entrepreneurship is singularly rewarding because everyday you learn something new. This learning curve is the steepest in the pre-seed stage. We look for founders who are always trying to improve their skills and their knowledge about their business and industry. We look for people who want to grow with us and get smarter everyday. Too often, cofounders are unwilling to learn new skills or adapt to new situations. Find a partner who shares your same passion for driving forward into the unknown.
3. Consider Someone with Complementary Skills
In the case of successful technical founders, most look for operators who can help scale their business. A cofounder shouldn’t be a carbon copy of you, but rather one who has strengths where you have weaknesses to create a well-rounded team. Startup Genome also found that multi-faceted teams with a technical cofounder and a business cofounder raise 30% more and are 20% less likely to scale prematurely. So, when looking for your cofounder, if you are technical, consider reaching out to a friend or acquaintance majoring in business or finance, or who participates in a business-related club; and vice versa, if you are operational, consider reaching out to a friend studying in the technical environment in which your startup operates, or is in a related club.
We hope these few tips help with getting on the right track towards finding the best co-founder. Always remember: You make all the decisions in your startup, but never be afraid to ask for advice. If you want to discuss more or have any questions, feel free to reach out!
We are planning on holding a virtual founder networking event next week on Friday, April 17th, at 12pm PST.
If you are a student interested in joining a startup, come to meet with current founders and ask them questions about their experiences. If you hit it off, you might even want to discuss working with them!
This event will feature a talk from established student entrepreneurs who faced this very problem and will subsequently move into breakout sessions for mingling and networking.
Please RSVP by Wednesday April 15th at 11:59pm PST. Looking forward to seeing you there!
