Remove Cofounder Remove Dilution Remove Product Remove Sales
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How many cofounders should your startup have?

The Next Web

Two more entrepreneurial ventures later, Gleb cofounded online backup provider Backblaze to help consumers affordably, automatically, and safely back up their data. What are the pros and cons of starting a business alone versus with cofounders? How many founders are too many? One” – You have to have a cofounder.

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8 Strategies For Sustaining Momentum In Your Startup

Startup Professionals Musings

In reality, too many choices actually dilutes customer interest in your existing market, and makes your job of production, marketing, and support much more complex. Your focus for momentum could be sales, profitability, or number of customers, but trying to keep all possible parameters growing is simply not practical.

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How to Configure Your Startup Team

Both Sides of the Table

Quick summary: Be careful not to have too many co-founders. it’s the most expensive dilution you’ll ever face. And you need to be careful about giving up control to cofounders as much as VCs. I don’t think VCs care as much about co-founders & economics as people think.

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Excerpt from "Do More Faster" - Avoid Co-Founder Conflict by Dharmesh Shah

ReadWriteStart

Do More Faster: TechStars Lessons to Accelerate Your Startup is the new book by David Cohen , founder and CEO of TechStars, and Brad Feld , managing director of Foundry Group. Below is his chapter, Avoid Co-Founder Conflict. A perennial favorite is to decide that each founder should own an equal share. For what reasons?

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Remind Me Why I Love You? (Why “In Person” is Everything)

Both Sides of the Table

Your product demo crushed. I left the meeting and had to attend a 3-hour board meeting where two founders have been fighting and each want the other one fired. But your co-founder had been senior at one of the big enterprise software companies and if I remember correctly American Express had run a big pilot with you.

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The Perils of Founder Fighting

Both Sides of the Table

I think as a tech industry we have bred a culture that places more emphasis on product excellence than managing human behavior. Of course it makes no sense to have great people management and a crappy product. ” Of course we all go into businesses expecting to be aligned with our co-founders but over time life changes.

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Entrepreneur Startup Share Depends on Contribution

Startup Professionals Musings

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Building a product doesn’t get it distributed and sold. Expertise can be marketing, technical, financial, or sales. The same logic applies to splitting equity with co-founders.