To maximize your startup’s potential early on, both with investors and on the product side, you may consider adding a cofounder to your team. While wildly successful startup founders find themselves basking in the spotlight alone, they were far from the sole founder of their enterprise. Steve Jobs, Bill Gates and many more famous startup founders may have a reputation for being at the top of the heap, but they had a team of cofounders to work with, no doubt driving a major part of their success.
Finding a cofounder, particularly meeting potential cofounders who are the right fit for your startup, can be challenging, but the benefits far outweigh the difficulties. With the right tools, advisers and connections, you may be able to find a cofounder who is the perfect match for your startup.
Why add a cofounder?
There are several reasons why having multiple founders in a startup provides opportunities and benefits to startup companies. The relationship between startup founder and cofounder is incredibly important, which is why so many compare the process to a marriage. When the partnership works out, the two-or-more sides help balance each other’s weaknesses while highlighting their strengths. If one side is lacking, the other side picks up the slack and vice versa. This is especially ideal for early-stage startups when there may not be enough funding to support additional employees, even if your business really needs their expertise or skills.
Finding a cofounder who fills that role can help your business grow faster. A cofounder could and should also fill any knowledge gap that you may struggle to fill yourself. For instance, if you are the head of a tech startup, but have no technical experience, it may be advisable to bring on a cofounder with the technological experience you lack.
On the flip side, if you are the one with technical experience, you may want to consider finding a cofounder with a business background or strong networking connections. Having multiple perspectives can also be a boon to early-stage startups as they work to solve problems and challenges that pop up.
Cofounder impact on investor interest
Multiple founders are also considered a huge positive for investors. Startups with multiple cofounders are more attractive to investors than those with only one founder for a few reasons:
- Diversification of skill sets.
- More resources to utilize.
- Redundancy in the leadership team.
It is possible for single founders to find investors, but having a team, or at least a partner, on your side will only strengthen your case. Deciding to add a cofounder may be easy, but finding the person meant to fill that space is another matter entirely. Having a plan can make the process easier to navigate.
How to find a cofounder
There are several ways to meet a cofounder. Universities are great places to meet educated, talented people and can make finding people with specific areas of focus easier. Online forum sites such as Reddit are also great for connecting with potential cofounders. Subreddits like r/cofounder are great intermediaries to introduce yourself to people with similar interests and passions.
There are also online founder databases to search through, such as CoFoundersLab. These are great methods for finding people in large cities such as Los Angeles, New York City, or when remote work is a possibility, but there are still plenty of options for those looking for someone more local.
Relevant events or meetups in your area could be a great way to find someone with a particular area of expertise that you are looking for. If you need someone with a business background and networking skills, try entrepreneurial meet and greets. Tech conferences are the perfect place to find potential chief technology officers.
Some people prefer looking a little closer to home for their potential business partner, which is where the importance of a personal network comes into play. If you know 20 people, and those 20 people know 20 people each, that is a field of more than 400 candidates.
Social media can also be a powerful source of potential leads when it comes to cofounders. Once you find a candidate, however promising they may be, you will still need to convince them that your business idea is strong enough for them to join in.
How to woo a cofounder
Founding a startup is not necessarily easy work. It entails long workdays, high levels of stress and little guarantee of a payday right away. To commit to you and your business, any potential partner in that enterprise will want to know that they are signing up for a fully fleshed out idea, preferably one that has already produced tangible results. Having a business model or having already raised funds are two major ways to impress potential cofounders and show them that you are not just fantasizing about starting your own business, you have put in the work and have a concrete plan that they can trust in.
Anders CPAs + Advisors works with startups and entrepreneurs on their financial needs so they can focus on what they do best. Learn more about the Anders Startup Group to discuss capital raising options for your startup.
Every day at Anders, we serve as a catalyst for those striving to achieve their highest potential and carry this mentality on to our clients and community. Through a collaborative approach and a combination of tax, audit, and advisory services, we help our clients achieve their goals.
