

Co-founder questions. - tahir

After reading PG's articles, and similar advice on the OnStartups blog, I am convinced of the value of a co-founder. But having a co-founder raises some questions, and I am wondering how other people have dealt with these issues.<p>1) I came up with the initial idea for my startup, and even did some ground work. Should I still give my co-founder a 50% share of the company? If not, what's a good way to think about allocating shares to a co-founder?<p>2) With two co-founders, should all decisions related to product development, funding, exit strategy etc., be consensus decisions, or can I assert a special decision-making privilege, by virtue of being the 'first' co-founder.
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qhoxie
To me these both address the same issue. I have heard a lot of different takes
on this situation, and I myself have dealt with it.

1) You should both get 50%. This is just my opinion, but it applies well to
most scenarios. Having an unequal allotment causes lots of motivational and
mentality issues for founders. This is the last thing a venture needs in the
turbulent early stages. It generally leads to better dedication and like
minded decisions between to two people.

A positive way to look at it would be this: by giving up, say 10% more than
you wanted to, the company has a better shot at success through two absolutely
driven founders.

2) This draws from the same motivation as the first. Cofounders lose value
quickly if one person always has the final word. You want them there to even
things out. Disagreements are to be expected and the process of compromise is
what makes the best decisions in many cases. Two minds working toward the same
goal are usually helpful, even if they are not always striking a chord.

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alex_c
I think it boils down to: do you want an employee for "your" (singular) start-
up, whom you will pay (at first) in shares, or do you want a co-founder for
"your" (plural) start-up?

I think either choice is valid, if you can find the right person. But you
should decide how much control you want to keep for yourself, and what that
implies for the other person's motivation and initiative.

