Co-Founder Mistakes That Kill Companies & How To Avoid Them

In the first episode of Rookie Mistakes, Dalton Caldwell and Michael Seibel discuss co-founder mistakes.

To create Rookies Mistakes we asked YC founders: Is there a simple fact you wish you knew when you started your company or a rookie mistake you wish you could take back?

00:00 - Rookie Mistakes
00:15 - Note from YC founder
00:32 - Write it down
00:49 - Biggest error - Founders looking for someone with a skill match
01:57 - Note from YC founder
02:05 - Co founder disputes
02:05 - Arguments
02:33 - 1. Pause (Don't have to keep the fight going)
02:45 - 2. Stress (How your co-founder deals with it)
03:03 - Note from YC founder
03:20 - Avoidance
05:01 - How should the CEO set up a company?
05:49 - Tactical tips for folks looking for co-founders?
06:12 - 1. Team first
06:58 - 2. Co-founders are a superpower
08:10 - Recommendations recap

[chapterme]

Chapters (Powered by ChapterMe) -
00:00 - Rookie Mistakes
00:15 - Note from YC founder
00:32 - Write it down
00:49 - Biggest error - Founders looking for someone with a skill match
01:57 - Note from YC founder
02:05 - Co founder disputes
02:05 - Arguments
02:33 - 1. Pause (Don't have to keep the fight going)
02:45 - 2. Stress (How your co-founder deals with it)
03:03 - Note from YC founder
03:20 - Avoidance
05:01 - How should the CEO set up a company?
05:49 - Tactical tips for folks looking for co-founders?
06:12 - 1. Team first
06:58 - 2. Co-founders are a superpower
08:10 - Recommendations recap

[slouischarlesYT]

Most of these tips and suggestions also apply to when choosing a spouse.

[akadaafrica]

There's nothing as depressing as having a cofounder but still feeling alone and like weight of execution is on you. It absolutely sucks!

I think a lot more founders are opting for solo founding because truth is we're all not going to have cofounders from college dorms or previous workspaces and the PTSD from broken founder relationships is as bad a that of a divorce.

And if the consequence for that is being alienated from funding an idea that's working and has achieved product market fit. I bet that more founders are becoming willing to take that risk. (This is from my informal research)

However, it would be great if YC conducted a poll to know how many founders want cofounders or would rather do it alone the outcomes would be interesting to see.

[ubermensch]

We missed these kind of vids! Thanks Michael!

[BoiNgocChannel]

I don’t have cofounder, I recruit a team and give them equity + small portion of salary for initial stage before getting funding

[SodiumSyndicate]

Hiring professionals & giving them equity is much better than looking for a co-founder if you don't already have co-founders. Sometimes, companies are run better with only one power source at the top without the politics of power struggle.

[SpaceK]

Conflict management is usually a neglected subject between co-founders. It should be some Conflict baseline where people can get back to see what next to do in case there is a disagreement between them.

[daveb]

The more I watch these videos the more obvious it becomes why they are so successful. This is great information.

[ai-engineer-scientist]

Hi YC, What does it mean great engineers? I hear Michael Seibel and Dalton Caldwell saying hiring great engineers or co-founders, but how do I know if someone is a good engineer? I am ML engineer-scientist, so am I a good tech founder? Or hire a good no-tech co founder for sales and marketing, so it means that if you are not already a good tech or sales you should not start a startup?
I am really focused.

[Apexzy]

You don't need a co-Founder. Been there, done that and the risk associated with it ain't worth it. If you can get a team to hire and build with you the better. Let's not over hype this whole Co-founder thing, startups are hard, having a co-Founder who losses interested during the pre stage with excuses isn't helpful. If you have a great Co-founder that's fine, if you don't and can outsource, do it!🚀

[aligulaj]

Conflict management and learning how to fight smart....are crucial

[SK-kjge]

Argument, disagreement, low ego must be welcomed, supported, encouraged in startups -- anyone who silences opposing speech has to be fired. A very common reason for startup failure is wishful thinking, where the founder never allowed anyone to argue and tell them the truth

[joanapartosa]

This is very helpful, Michael! This is very timely for my business. Will watch more of your videos!

[HunterFoxx]

I’m at revenue generation in my startup. And I always think to search for a cofounder, I couldn’t find pressing need. I have done the coding, the infrastructure, the marketing, the digital marketing, onboarding first customers. I understand that cofounder offer different perspective.
What am I missing?

[tubopedia]

I would be really curious to see the list of successful startups to go through YC without co-founders vs companies with, I am sure that would tell a story as well.

[anthonyleonard]

Thank you for taking the time to share these lessons learned and advice.

[michaeltucker]

I'm trying to reconcile "You NEED a co-founder" with "Co-founder disputes are more likely to kill you than anything else".

[matts]

Love this setup. More please. You learn a ton and these 2 are very entertaining actually. Can easily replace Netflix :D

[mvp_launch]

I disagree on the 50% + 1 rule on settling disagreements. We have a 'beatles' rule. Either we all agree or we don't do it. I think having that +1 override builds resentment over time.

[vlogmoinc]

its hard to find someone who is not busy and can commit all their waking hours to the start up