How to Avoid Average Co-founders - Choose the Right Co-founder for Your Startup

What Key Qualities and Skills are Crucial in Co-founders to Avoid Mediocrity and Build a Strong Team within a Startup?

"Diversity of skills, coupled with shared values. Imagine a ship - while the captain sets the course, the first officer ensures the crew works harmoniously. Both roles are important, both roles are completely different. I once led a Software House, and it was precisely this balance of skills and division of duties that were crucial... until our paths diverged, not due to a mismatch of skills, but precisely due to values. Each founder brings their character, traits, and values to the company, and together they create a collective work. But it's important for these traits to reinforce each other, not clash." ~ Szymon Paluch

"Building a startup in the early stage involves a lot of uncertainty and work under time pressure, so it's worth knowing how your potential co-founders perform in challenging conditions. Their previous track record is also important. Team complementarity is crucialand there is the 3H rule for perfect startup team- hustler (sales/CEO), hacker (technology/CTO), and hipster (product design/marketing/UX)." ~ Maciej Jankowski

The qualities and skills of a team starting to work together towards a common goal should complement each other, with everyone having their own domain of expertise. However, in the end, there must be a shared goal - the 3H team complementarity describes it well. Szymon touched on the topic of shared values, where their absence led to project termination. I believe this is a crucial aspect if we want to turn a startup into a long-term company, as values determine the direction we want to take.

What Strategies and Criteria Should be Applied in the Search for Potential Co-founders to Ensure Alignment of Goals and Vision?

"So, let's go! Find out where your potential co-founder is in life. New child? Recent credit? All of this impacts perspectives. Someone who was an ideal partner due to changes in their living environment could become the worst partner. Additionally, a harsh fact: don't go into business with close friends or family (people you care about) - challenges arise, and sometimes personal relationships don't withstand business storms. Key point? Shared vision, coherent development strategy, and mutual understanding of equity distribution. Essentially, you're creating a business marriage. Make sure you're compatible before saying 'yes' ?? or... sign a good prenup ???." ~Szymon Paluch

"Of course, at the beginning, with a team of just 1 or 2-3 people, we can verify hypothesis about the problem and target audience ourselves if we know how to do? customer development and how to talk to potential clients. Then, thanks to the rapid development of low-code/no-code tools, even without a CTO, we can build a simple prototype to quickly test our product with early users. So, it's important to carefully and patiently build the team to attract strong players to our startup. Be cautious about distributing equity too easily if, for example, you don't have a budget for developers, and use safety mechanisms like cliffs and equity vesting." ~Maciej Jankowski

Szymon and Maciej addressed crucial aspects in two stages: the strategy for choosing co-founders and how to manage them. Szymon's approach suggests that before starting, it's important to thoroughly know your potential co-founder's current situation and plans. Maciej rightly points out the increasing availability of tools and services to start projects independently and manage who joins you as a co-founder. I also agree with Maciej regarding the long-term nature of a co-founder relationship, and that equity allocation should be carefully considered.

What are the Most Common Mistakes Entrepreneurs Make in Choosing Co-founders and How Can They Be Avoided?

"When the sea gets rough, some co-founders might start pointing fingers and blaming each other. This is a huge red flag! Business is about solutions, not finding a scapegoat. While trust is essential, don't wear rose-colored glasses. Personal connections can sometimes cloud the truth. Choose wisely, trust but verify.??" ~ Szymon Paluch

"If we haven't worked with a potential co-founder before and don't know them for years, it's worth checking how we work in a team on a smaller project. Events like Startup Weekend or hackathons are also great place for this purpose. Often, the issue can be a co-founder's limited ability to engage heavily in the early stages due to their current work and significant financial commitments (high living costs/mortgage) or family. Pay attention to the lack of preparation of a Founders Agreement, which defines decision-making in key areas, intellectual property rights, how shares will be divided when the company is formed, required level of co-founder involvement, share vesting, buyout options if one founder wants to leave the startup, etc. Such an agreement can help avoid challenging situations in the future or dead equity scenarios." ~Maciej Jankowski

Mistakes and problems will always arise; the question is how you'll handle them together. Clear agreements before starting are crucial. Founders often leave this until the last minute, and then they realize they have a promising project with several co-founders but can't agree formally on who, what, how, and how much. As Maciej mentioned, Founders Agreement is vital. Crisis situations show whether you've chosen the right person to work with, so it's a good idea to collaborate on a smaller project with a potential co-founder and see how well you work together.

What are the Relative Benefits of Having a Diverse Co-founder Team in Terms of Skills, Experience, and Perspectives?

"Synergy in diversity. Imagine a world where everyone thinks, acts, and reacts the same way. Boring and ineffective, right? The beauty of a startup lies in its innovative approach. And innovation thrives on diversity. Strategy and operations. External activities (sales, marketing, PR) and internal focus (team-building, process definition, quality maintenance, management, finance). Each founder has their domain, and when these domains are diverse, the result is a well-oiled, holistic machine. Remember, unity doesn't mean similarity, but harmony in values.??" ~Szymon Paluch

"An experienced and complementary team is our key asset, not only for building a product but also for fundraising. While working at the top American accelerator Techstars in Berlin, our director said that teams in the best startups should be like a SWAT team, as in the critical early stage, time is the critical resource for verifying hypotheses and the business model, acquiring first customers, and then maintaining runway after getting the first investor." ~Maciej Jankowski

Both experts' insights highlight that a diverse team in a startup brings only advantages. Startup life is very dynamic, and you often need to tackle challenges from all sides, pivot, and maintain a holistic approach to building a team that can weather both the stormy and sunny times. Despite the diversity, having one goal and a shared mission serves as the glue that holds the team together.

In Conclusion

"As you embark on the journey as a co-founder, here's my golden advice: Would you be ready to sacrifice your relationship with your co-founder for the sake of the business if needed? If the answer is 'no,' think twice. Business relationships are a complex dance of passion, trust, and challenges. Make sure your dance partner complements your moves.????" ~ Szymon Paluch

A startup is a real roller coaster, where the pace is dizzying. It matters who's on that ride with you, whether you'll survive the tough times together and enjoy the good times. The constant ups and downs, not only in the company's situation but also in emotions, particularly during challenging moments, indicate that you should know your potential co-founder well and ideally have worked with them before. Traits and skills should complement each other, and a shared mission should keep you close in this journey.

My appreciation to the two experts for sharing their expertise and insights:

Maciej Jankowski - connecting startup community - for the last 15 years has been building “Silicon Valley” in people’s mind sharing their core values as CEO/founder of Netcamp Foundation, developing vibrant tech/startup community in western Poland. Currently CMO at Blockchain Alliance and Head of marketing of new smart-fundraising platform connecting startups from CEE with best VCs.

Techstars community leader in Poland, facilitator and organizer of Startup Weekend. Co-founder of Startup Poland, creating better conditions for Polish startups' growth. Recognized with European Enterprise Award and special Auler Award for supporting technological entrepreneurship in Poland.

Data driven product marketing growth hacker and former marketing advisor for Techstars METRO accelerator in Berlin. Pay it forward startup evangelist, mentor and blockchain geek. For over 10 years helping ideas become worth spreading at TEDxSzczecin.

Szymon Paluch - For over 8 years, have been creating IT businesses. Among other roles, used to be the CTO of the uPacjent.pl platform. Co-created the Diagnostyka Digital HUB, a center for digital innovation. On a daily basis, engage in providing strategic support for IT technology management and engineering teams. Guiding clients in gaining a competitive edge in the market through the utilization of IT technologies.

Michal Wojtas - the Co-founder and CBO at Degen House , leveraging his visionary leadership and expertise in business strategy to drive the company's growth. With a keen eye for innovation and a team of experts, shape Degen House's trajectory as a premier full-lifecycle software development house, delivering cutting-edge solutions and exceptional digital experiences.

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