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- ♞ Explaining The Co-Founder Relationship
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What do you need to tell investors about your co-founder relationship?
Startups are tough. Mentally, you need to be able to deal with the ups and downs of closing and losing million-dollar investments and launching and failing to launch potential billion-dollar products. These experiences take a real toll on individuals and the relationships between those running the business.
Because of this, your co-founder relationship is vital to success. If you and your co-founder don’t have a strong relationship, it can break down easily. Even if you do have a good relationship, if it’s a childhood relationship or if you are immature in your dealings, this will impact your team as you try to scale. Everyone will inevitably grow tired of having bosses that don’t present themselves well to the rest of the office.
It is for this reason that investors care deeply about the founder relationship. So what do investors need to know about this relationship before investing?
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Where did you meet? Investors want to know if you are childhood friends with a close bond, met at a hackathon and have common interests or teamed up at university with compatible skills, aiming to start a business. Howeve,r you met they will want to know.
Have you worked together? Even if you have been friends for decades, you may never have worked together and could be less compatible than two co-workers who have been working together for a few months. What evidence do you have that you can work together, this can be as simple as a school project or a social event or as advanced as having shipped product together, working at a big-tech firm.
How do you compliment each other? Your skills should be complementary. If you both/all have the same skillset, this isn’t ideal for a founding team. Ideally you’ll be able to split responsibilities based on competency.
Do you explain your co-founder relationship when pitching? |
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Onwards and Upwards,
