Why a co founder is important - chip werner - cofounderlab
Introduction The Power of companies founded by teams Researchers looked at almost 2,000 companies and categorized the best performing ones as “hyper-growth”. A staggering 94% of the hyper-growth companies were founded by teams, whereas only 6% were founded by solo entrepreneurs.
Benefits of Co-FoundersThere is strength in a foundation when it is formed by a team• Support – The journey is tough - having a Co-Founder makes it more manageable• Complementary Skills – A Co-Founder can complement the partnership with Knowledge, Skills and Abilities you may lack
What to expect• Investor sentiment – Start-ups with two or more Co-Founders have a greater chance of success.• Diversity – A Co-Founder that adds diversity to your team can help your product or service reach a wider consumer base.• Speed to market – A Co-Founder can share some of the burden. There is always too much to do, divide up the tasks amongst multiple people.
The Co-Founder relationship Around 65 percent of the failures of high-potential startups are due to “people problems”—the interpersonal tensions within the team. - Founders Dilemmas – Relationship problems – Role and decision-making problems – Reward problems (e.g., tensions over equity splits).
Characteristics• Balance – Pick you up when you are down; Push you when you are stagnating• Trustworthy – Be a sounding board – Be honest with you• Flexibility – Although the idea may change, ideally you want the partnership to remain the same.
Finding a Co-Founder• Traditional Method – Friends & Family - A relatively small personal network • Risks: friends or relatives are the least stable of all types of founding teams. Within a founding team, each additional social relationship increases the likelihood of a cofounder leaving the team by almost 30%.• Additional Methods – Networking events – Internet
Resources Networking Events Meetup is the world’s largest network of local groups. They occur in 45,000 cities with 11.1 million members and there are many entrepreneur groups in each city. Internet Online platforms such as CoFoundersLab and Founder match enable entrepreneurs to discover and connect with Co-Founders based on qualifications and compatibility.
Summary Conclusion• A Co-Founder can help you carry some of the weight during the early stages of your Start-Up, and more importantly balance out some of the skills you lack.• Two methods to expand your network and expedite the founder matching process are to leverage the internet and attend networking events.• Know yourself and choose a Co-Founder that is the right fit. Your Co- Founder may be the second most important relationship of your life
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