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Finding a Cofounder

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Finding a Cofounder

#1

Post by lanceusa »

I'm in need of some advice.

I have started my own project in Sept 2007.

I've managed to just about get it to 70% complete for version 1 which I am schedule to release the beginning of April.

Along the way I've invited a few alpha testers who I knew from another site which would be a competitor. While chatting almost daily with one of the alpha testers (who is also a professional programmer as myself) I thought to myself wouldn't it be great if he were to come on board and directly help guide the ship so to speak. His many suggestions have been pretty helpful and good...although sometimes he tends to make suggestions that replicate functionalities in sites he currently frequents.

My question is, what is expected of bringing on a cofounder later in the game? How do I establish that this is my vision and things should be done my way? Or should I just not be so paranoid in fear a second coder could just screw everything up? Should there be some agreement up front about who has what stake? What precautions should I look out for? He works for a good company in Austin and from our conversations he almost seems right up my alley...so it could turn out to be a golden opportunity and not the glooms day scenario I've been painting thus far.

Any encouragement or warning would be great.

By the way...make this dialog bigger Y...its freakin too small.

Re: Finding a Cofounder

#2

Post by edw519 »

I am in the exact same boat, so I don't have many answers, just more questions.

I think I'm 60% complete, but who's to say?

I have coded everything just the way I want, what if the next person has better ideas?

What about equity? I've put too much into this to keep less than 50%.

I would love some help, but I don't want to compromise anything.

Actually, you're ahead of me. You have someone in mind. Every potential co-founder I consider doesn't even come close.

Just thought you'd like to know you're not alone. I'm interested in others' opinions as well.

Re: Finding a Cofounder

#3

Post by ph0rque »

edw519 wrote: post #2

I am in the exact same boat, so I don't have many answers, just more questions. I think I'm 60% complete, but who's to say? I have coded everything just the way I want, what if the next person has better ideas? What about equity? I've put too much into this to keep less than 50%. I would love some help, but I don't want to compromise anything. Actually, you're ahead of me. You have someone in mind. Every potential co…

I'm in the same boat as you and as lanceusa, although I am probably 90% done with the alpha. Maybe at this stage, it's better to finish the prototype by yourself, and at that point try to get funding? Once you have funding (or can afford to self-fund, which I can't), just hire the person with the tech skills that you need, instead of giving equity? Just my two cents.

Re: Finding a Cofounder

#5

Post by edw519 »

ph0rque wrote: post #3
edw519 wrote: post #2

I am in the exact same boat, so I don't have many answers, just more questions. I think I'm 60% complete, but who's to say? I have coded everything just the way I want, what if the next person has better ideas? What about equity? I've put too much into this to keep less than 50%. I would love some help, but I don't want to compromise anything. Actually, you're ahead of me. You have someone in mind. Every potential co…

I'm in the same boat as you and as lanceusa, although I am probably 90% done with the alpha. Maybe at this stage, it's better to finish the prototype by yourself, and at that point try to get funding? Once you have funding (or can afford to self-fund, which I can't), just hire the person with the tech skills that you need, instead of giving equity? Just my two cents.

Pretty good two cents. I have a feeling that's what will happen.

I often remember the words of Felix Dennis who says he'll do just about anything to succeed---except give up equity. That advice runs counter to much of the thinking here. Then again, Dennis is a billionaire. His book, How to Get Rich, is one of my favorites. (How could you not love, "Money did not make me happy. But it definitely improved my sex life."?)

Re: Finding a Cofounder

#6

Post by webwright »

I would suggest letting go of the idea that you've created much value.

One way to look at it is this:

If he came on TOMORROW and both of you busted ass for 12 months, how much of the value at the end of that 12 months would have been built before he came on? How about in 4 years (your standard vesting plan)?

The thing to key on is VESTING. Make damn sure that he gets ownership in a trickle (starting after a few months maybe as a trial period)... But make sure they he can eventually get really close to being an equal partner (maybe a touch less than 50% due to the fact that you got started a touch early).

Re: Finding a Cofounder

#7

Post by webwright »

edw519 wrote: post #5
ph0rque wrote: post #3

Earlier quoted context omitted.

I'm in the same boat as you and as lanceusa, although I am probably 90% done with the alpha. Maybe at this stage, it's better to finish the prototype by yourself, and at that point try to get funding? Once you have funding (or can afford to self-fund, which I can't), just hire the person with the tech skills that you need, instead of giving equity? Just my two cents.

Pretty good two cents. I have a feeling that's what will happen. I often remember the words of Felix Dennis who says he'll do just about anything to succeed---except give up equity. That advice runs counter to much of the thinking here. Then again, Dennis is a billionaire. His book, How to Get Rich, is one of my favorites. (How could you not love, "Money did not make me happy. But it definitely improved my sex life."…

I think that's LOUSY 2 cents. Take the top 200 sites (by traffic) and show many how many have a single founder.

The number to optimize is your chance of getting ANY payday- not your percentage of ownership. Would you trade 50% of your company to increase your chance of success from 2.1% to 4.2%? I have no idea what those numbers are (but I suspect that a co-founder more than doubles your shot at success)... But if you're more concerned with personal wealth than having a successful company, you're already a step behind.

If you think you'll just run out and get some funding so you can "hire" a partner, you should consider that savvy investors are thinking one of two things:

1) This guy either isn't persuasive enough or doesn't have a good enough idea to get a co-founder, OR

2) This guy is jealously guarding his equity, when he could add 50 hours a week of free and passionate labor from someone with a (hopefully) complementary skillset OR

3) This guy isn't smart enough to know that he doesn't have all of the skills and answers to pull off v1 of this thing.

Re: Finding a Cofounder

#8

Post by eusman »

webwright wrote: post #7
edw519 wrote: post #5

Earlier quoted context omitted.

Pretty good two cents. I have a feeling that's what will happen. I often remember the words of Felix Dennis who says he'll do just about anything to succeed---except give up equity. That advice runs counter to much of the thinking here. Then again, Dennis is a billionaire. His book, How to Get Rich, is one of my favorites. (How could you not love, "Money did not make me happy. But it definitely improved my sex life."…

I think that's LOUSY 2 cents. Take the top 200 sites (by traffic) and show many how many have a single founder. The number to optimize is your chance of getting ANY payday- not your percentage of ownership. Would you trade 50% of your company to increase your chance of success from 2.1% to 4.2%? I have no idea what those numbers are (but I suspect that a co-founder more than doubles your shot at success)... But if yo…

he sais he doesnt have someone in mind, so taking the risk to do it on his own is an indication at least of passion.

Re: Finding a Cofounder

#9

Post by lanceusa »

webwright wrote: post #7
edw519 wrote: post #5

Earlier quoted context omitted.

Pretty good two cents. I have a feeling that's what will happen. I often remember the words of Felix Dennis who says he'll do just about anything to succeed---except give up equity. That advice runs counter to much of the thinking here. Then again, Dennis is a billionaire. His book, How to Get Rich, is one of my favorites. (How could you not love, "Money did not make me happy. But it definitely improved my sex life."…

I think that's LOUSY 2 cents. Take the top 200 sites (by traffic) and show many how many have a single founder. The number to optimize is your chance of getting ANY payday- not your percentage of ownership. Would you trade 50% of your company to increase your chance of success from 2.1% to 4.2%? I have no idea what those numbers are (but I suspect that a co-founder more than doubles your shot at success)... But if yo…

Points well taken
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