Business co-founders in tech startups are less valuable than they think
Solo vs. cofounder tradeoffs
- Several technical founders report successful solo companies and argue both tech and business can now be self-taught; a cofounder mainly reduces investor risk and founder burnout.
- Others say repeated solo failures came from weak selling and market validation, not engineering, and that having someone focused on customers and sales is crucial, especially in B2B.
- There’s agreement that “teams with both” tend to go further, but only if both actually contribute.
What valuable business cofounders bring
- Repeatedly cited high-value contributions:
- Distribution and customer acquisition (early sales, waitlists, LOIs).
- Deep domain expertise and access to the target market.
- Networks that open doors to customers, partners, and investors.
- Operational competence: hiring, contracts, finance, HR, keeping the company running.
- Some argue customer/problem discovery and pricing are usually harder than the engineering; others counter that many “business” people are bad at this in practice.
“Idea guys” and equity splits
- Strong consensus that “idea-only” founders are close to worthless; execution, not ideas, creates value.
- Many anecdotes of non-technical “MBA/idea” types demanding 80–95% equity while contributing no customers, money, or traction; this is widely viewed as a red flag.
- Preferred patterns: roughly equal splits (or slight adjustments for cash or time), with vesting and performance-based top-ups. Unequal splits without money or proven distribution = “just hire them.”
Replaceability and lifecycle
- Some say technical founders are essential early (0→1) but often replaced once product and revenue stabilize; CEOs tend to remain.
- Others note that any founder who fails to grow—business or technical—is replaceable; both roles must scale with company complexity.
Skill overlap vs. separation
- Many advocate multidisciplinary founders: tech who can talk to customers and understand business, and business who actually understand the product. Sharp walls between “tech” and “biz” are seen as a weakness.
- There’s debate over whether tech should invest heavily in business skills (risk of becoming a “jack of all trades”) versus partnering with a strong business counterpart.
Choosing a business cofounder
- Common advice:
- Look for concrete proof: prior exits, real customers lined up, money raised, or deals in progress.
- Avoid those who mainly negotiate equity, pontificate, or confuse talking with executing.
- Treat cofounding like marriage: long “dating” period, deep trust, and aligned expectations from day one.