How to Identify the Perfect Cofounder

One of the first and most important decisions entrepreneurs make is whether to go it alone or bring on cofounders. Many investors favor startups with multiple founders, believing that a team reduces business risk by diversifying skills, sharing responsibilities, and preventing burnout. But forcing a cofounder relationship can do more harm than good: Research by entrepreneurship expert Noam Wasserman and others shows that conflict within the founding team is one of the primary reasons high-potential startups fail.

The author’s research and experience have revealed that when a great match happens it can be magic—but like any marriage, a cofounder relationship should not be entered into rashly.

Before embarking on the courtship process, it’s important to first assess whether you need a cofounder at all. There is conflicting data on the correlation between a cofounding team and successful outcomes.  When deciding whether to bring on a cofounder, you should evaluate whether you have unmet needs in three key areas:  partnership (e.g., to brainstorm with), expertise, and experience.

If you decide, after applying the lenses above, that you need and want a cofounder—whether it’s at the inception of your venture or later on—do not rush the process. Finding the right cofounder is not as difficult as finding a life partner, but it’s close. It’s a courtship, and despite the urgency you may feel, it is critical to think carefully about what you want in a cofounder and spend time nurturing prospective relationships. Certainly, patience seems to pay off.  Sixty percent of the cofounders the author surveyed with successful startups—those that had been operating for more than three years and had raised funding through a series B, the point at which product-market fit has been established and investors expect rapid growth—had spent more than 12 months working together or interacting in other capacities before starting their venture. Approximately 25% of them had been former colleagues or were personal friends, suggesting that prior relationships are conducive to scaling a startup.

Drawing on her experience working with, investing in, and advising startups, the author has identified a set of best practices for selecting a cofounder. Even if you had one in a previous startup, the process can still be valuable as you think about the distinctive needs of your current venture.  Conduct a listening tour.  Describe in writing what you’re looking for in a partner.  Choose half a dozen people to “date.”  Test the relationship in various situations.  Have vulnerable conversations.  Have a prenuptial (prenup) conversation.  And meet each other’s partners, families, and friends.

Once you’ve found your ideal partner, the hard work is just beginning. As you dig in, it can be easy to forget to nurture the relationship. Without routine check-ins and alignment discussions, cofounding teams can devolve into resentment and conflict. Not only do the cofounders suffer but tension can spread to team members and raise red flags for investors. Here are a few ways to foster a strong cofounding team:

 A) Set regular cofounder meetings—ideally two sessions a week—to talk about strategy and the direction of the business and to air any concerns about the relationship.  B) Spend time together outside work at least once a month to deepen your trust and personal connection. This is especially important if you work remotely. The deeper the connection, the easier it will be to handle stressful situations. Respect boundaries to make sure there is clarity around decision-making and to avoid stepping on toes.  And C) Hire a coach to work with you as individuals and together as a cofounding team. It’s much easier to talk through challenges with an expert when things are just simmering than when an issue has come to a full boil.

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