Founders

This section covers issues that surround the people that start a company. Deciding to start a company by yourself or with co-founders can have a great influence on your company and your personal financial interests. Those you choose to partner with is also a decision that should not be taken lightly. This section covers these matters, while personal and broader team issues are covered elsewhere on startup{ery.


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Founders

Babak Nivi

Is it fair for founders to own about 100% of a startup while employee #1 only owns a few percent? Are founders 10-1000x more valuable than employees?

 

Mark Suster 

Your company of 10 people doesn’t need 5 that are like you.  You don’t necessarily have to have a ying and yang co-founder.  But if not in your co-founder make sure that you think through all of the functional roles in your company: sales, marketing, finance, product management, customer support, technology and think about which ones match your strengths and where you need to plug holes.

 

Babak Nivi

Of course three-founder and one-founder companies can be successful, it’s just that generally speaking, over mass statistics, if you look at many, many companies, especially the bigger ones, it’s usually two founders that really matter. 

 

Mark Suster 

When you’re an early-stage startup that hasn’t raised any institutional money you end up doing almost every job function of the company yourself.  But some companies have entrepreneurs that seem talented on paper, are in a space that seems interesting to investors and are able to raise venture capital early in the company’s existence.  This can often happen when there is a good product built but no real customer adoption yet.  This is what happened to me.

 

Mark Suster 

If a company has reached a level of success, has been around for a few years and you believe the company has potential to break out into a much bigger company then you should let the founders take money off of the table.  It’s that simple.