How to Find a Technical Cofounder
Finding a technical cofounder can be one of the most significant decisions you make for yourself and your company. The ‘cofounder’ part of ‘technical cofounder’ isn’t as literal as you would think, but this newfound partner you will hire will significantly contribute to your company and help you sink or swim.
You’ll look for a technical co-founder if you are an entrepreneur with big software ideas and aspirations but lack the technical skills to make the software dreams happen. That’s where a second founder comes into the picture.
Non-technical owners and leaders need a technical cofounder, and they know it. There’s no amount of confidence or method a leader can follow to complete the software, especially if they have no background in something similar to the task they are trying to accomplish. Turning to a professional technical person is the answer, and it’s not as expensive as some would think.
What Do You Want?
Not every idea is created equal, and not every technical cofounder needs the same expertise. If your big picture is to recreate the type of oil used for gasoline, you should be pretty familiar with the chemistry of combustion. But if you are looking for a co-founder to help you weigh your fidget spinner correctly, you won’t need someone with as much experience as a chemist for your new tech startup. Each time you look for a founder, that person should possess the skills you lack.
Depending on what you want, you’ll need to craft a pitch to get this cofounder on board to work with you and your company. If you’re looking for a specific skill set, other people are too. You’ll need to sell yourself and your company to the person. You’ll need to practice a good elevator pitch to get their attention; you aren’t the only entrepreneur they’re talking to.
When pitching your startup idea or business to a co-founder, you can use the same slide deck that you would use to pitch investors for funding, and be sure to:
- Be clear and specific
- Avoid buzzwords and adjectives
- Identify demographics
- Specify your market
- Clarify the buyer
- Solve a problem and offer a unique value proposition
Ask the Hard Questions
On top of ensuring they want to work with you, you must ensure that you want to work with them. You need to ask the tech partner questions about how they work when they work and how they respond to inevitable adversity. All of this will help you find compatibility as soon as it appears. Some of the tough questions you should ask here include:
- How do you deal with stress and big challenges
- Have you ever failed at anything
- How do you deal with conflict
- Who is going to be CEO (and why)
Start With Personal Networks
The best place to start looking for a business partner is inside personal networks. This is where you will find your best and most beneficial potential cofounder. You’ll want to evaluate everyone in your circle before venturing too far out. Who can accomplish the desired outcomes? Who has a specialty or degree with the skill you are looking for? These are the questions you’ll ask yourself very early in the search.
If no one in your immediate circle yields anything promising, it’s time to move on to your next layer. Ask yourself who inside of your process has a large handful of connections you can utilize. Ask them specific questions as far as the skills required for your venture. Rest assured; you’ll find someone here that will offer a solid match. Be sure to explore your entire startup ecosystem, including:
- Colleagues
- Venture Capitalists
- Lawyers
- Accountants
- Consultants
- Recruiters
- Other entrepreneurs and more
No Network? No Problem.
Not everyone has plenty of people they can reach out to. Whether you’re a homebody or just from a small town, the internet sensation was created to set you up for success. In fact, many people searching for a cofounder will look outside of their network. It reduces the chances of working with friends or family, which is often frowned upon. Many great start-up teams do come from a cold call or advertisement. If you’re looking for somewhere to start building your technical team, look no further than:
- LinkedIn.com
- Angel List
- Elpha
- The Mom Project
- Monster.com
- CraigsList.org
- Dice.com for technical hires or Builtin.com which offers job posting services and local resources for entrepreneurs.
When finding a cofounder on a site like the ones mentioned above, you’ll need to be extra careful in hiring. To no one’s surprise, you’ll inevitably run into some people with questionable motives and work ethics. Make sure to ask the hard questions, trust your gut, and meet over Zoom at least a handful of times.
Finding a technical cofounder is crucial for any non-technical founder looking to start a tech company. A technical cofounder can provide the necessary skills and expertise to build a product and help develop the company. However, finding the right technical cofounder can be a daunting task. Here are some of the best ways to find a technical cofounder:
Attend Networking Events
Networking events can be a great way to meet potential technical cofounders. Some events focus on startups and entrepreneurship, and attending these events can help you connect with like-minded individuals who share your vision for building a successful tech company. Additionally, many universities and tech hubs host hackathons and pitch events, which can provide an opportunity to showcase your ideas and potentially connect with a technical cofounder.
2. Use Online Platforms
Several online platforms can help you to connect with potential technical cofounders. Some popular platforms include AngelList, CoFoundersLab, and FounderDating. These platforms allow you to create a profile and connect with other entrepreneurs and technical experts who are interested in starting a company. These platforms can help you expand your network and connect with individuals who share your interests and goals.
3. Tap into Your Existing Network
Your existing network can be a valuable resource for finding a technical cofounder. Reach out to friends, family, and colleagues who may know someone with technical expertise. Additionally, consider contacting alumni networks, industry groups, and professional associations to see if anyone can make an introduction.
4. Attend Technical Meetups
Technical meetups can be a great way to connect with individuals with the technical skills you need to build your product. These meetups are typically focused on a specific technology or programming language and can provide an opportunity to learn about the latest trends and developments in the industry. Additionally, attending these meetups can help you to connect with potential technical cofounders who share your interest in the technology.
5. Work with a Startup Incubator or Accelerator
Startup incubators and accelerators can provide a valuable resource for non-technical founders looking to connect with technical experts. These programs typically provide mentorship, resources, and access to a network of experienced entrepreneurs and technical experts. Additionally, many of these programs can help connect you with potential technical cofounders interested in building a successful startup.
When it comes to finding a technical cofounder, it’s essential to take a proactive approach. Combining the above strategies can help you expand your network and connect with potential technical cofounders who share your vision and goals. Additionally, it’s important to be patient and take the time to find the right technical cofounder. A successful startup requires a strong team and finding the right technical cofounder can be the difference between success and failure.
In addition to the strategies outlined above, there are a few other things to remember when searching for a technical cofounder. First, be clear about your vision for the company and the role of the technical cofounder. This will help you to identify the skills and expertise you need in a technical cofounder and ensure that both parties are aligned on the company’s goals and vision.
Second, be prepared to invest time and resources into the search process. Finding the right technical cofounder can take time, and being patient and persistent in your search is essential. Additionally, consider offering equity or other incentives to potential technical cofounders to help attract top talent and ensure their commitment to the company.
In summary, finding a technical cofounder is critical in building a successful tech company. By attending networking events, using online platforms, tapping into your existing network, and attending technical meetups, you’ll be able to find someone reasonably quickly.
Is There a Downside?
While having a technical cofounder can be a significant advantage for a startup, there are also potential downsides to consider. Here are some of the main disadvantages:
Equity split: One of the most significant downsides to having a technical cofounder is the equity split. In most cases, the technical cofounder will receive a significant portion of the equity in the company in exchange for their technical expertise and contributions. This can be a challenge for non-technical founders who may feel like their contribution is undervalued or may feel they are taking on more risk or putting in more effort than the technical cofounder.
Communication challenges: Communication between non-technical and technical founders can be challenging, particularly if they have different backgrounds and terminology. It’s essential to establish clear lines of communication and ensure that both parties understand each other’s perspectives.
Technical dependence: If the technical cofounder leaves the company or is unavailable, the non-technical founder may be left without the technical expertise to continue building the product. This can be particularly challenging if the non-technical founder doesn’t have a solid technical background.
Technical bias: A technical cofounder may have a bias towards technological solutions, which can lead to a product that is overly complex or difficult for the average user to understand. It’s important to balance technical solutions with the needs and preferences of the end user.
Limited perspective: A technical cofounder may have a narrow view of the product, limiting innovation and creativity. It’s important to balance technical expertise with creativity and outside-the-box thinking to ensure that the product is unique and stands out in the market.
Limited business skills: While a technical cofounder may bring technical expertise to the team, they may not have the same level of business skills or experience as the non-technical founder. It’s vital to ensure that both parties understand the company’s business side and can work together to make informed decisions.
It’s important to note that not all technical cofounders will have these downsides, and some of them may be mitigated through effective communication and collaboration. It’s also important to consider the potential upsides of having a technical cofounder, including technical expertise, complementary skills, shared vision, and investor appeal. Ultimately, the decision to have a technical cofounder will depend on the needs and goals of the company and the skills and experience of the founding team.
How to Form Your Co-Founder Relationship
Determining the equity split is the first part of turning your founder relationship into something formal. Obviously, this part of the relationship may take more than a conversation or two to work out, but if you neglect it, you’ll both regret it. There’s no one correct answer for an equity split. Dan Shapiro, CEO of Glowforge, covered this topic in a GeekWire article advising, “The only wrong answer is a 50/50 split.”
Although some helpful tips from Shapiro may be considered outdated or cliche, they are more than appropriate to practice. He says it’s vital that each founder brings an equal amount to the company, ensuring each individual earns their “founder shares.” Other considerations are:
- Whoever came up with the idea gets more
- Whoever provides the most funding gets more
- Full-time founders should receive more
- If you’re the CEO, you’re entitled to more equity
- Reputation is vital for equity entitlement
- Download the Equity Split Worksheet to determine the split
Create a Payment Plan or Equity Payout Plan
When it comes to starting a business, finding the right partner is crucial for success. If you’re a non-technical founder, one of the most important decisions you’ll need to make is how to split equity with your technical cofounder. Splitting equity can be a complex process that requires careful consideration and planning to ensure that both parties are fairly compensated for their contributions to the company.
Here are some key factors to consider when splitting equity with a technical cofounder:
Evaluate Your Cofounder’s Contribution
The first step in splitting equity is to evaluate your cofounder’s contribution to the company. This can include factors such as their technical skills, experience, and the amount of time they’re putting into the company. Taking an objective approach when evaluating your cofounder’s contribution is essential to avoid potential conflicts.
Consider the Industry Standard
It’s also important to consider the industry standard for splitting equity. Different industries and stages of companies may have different norms regarding equity splits, so it’s essential to do your research and consult with industry experts to ensure you’re making a fair deal.
Decide on Vesting Schedules
Vesting schedules are agreements that determine when a founder’s equity becomes fully earned. This is important for both non-technical and technical founders, as it ensures that both parties are incentivized to stick with the company and continue to work towards its success. Vesting schedules can also help protect the company if one of the founders decides to leave early.
Consider Future Funding Rounds
Another essential factor to consider is future funding rounds. If you plan on raising additional capital down the line, it’s necessary to clearly understand how equity will be split and diluted as new investors come on board. This can help avoid potential conflicts and ensure everyone is on the same page.
Have an Open Dialogue
Communication is vital when it comes to splitting equity. Having an open dialogue with your cofounder is essential to ensure that both parties are comfortable with the agreed-upon equity split. Having an honest and transparent conversation can help build trust and ensure everyone is aligned on the company’s goals and vision.
In summary, splitting equity with a technical cofounder requires careful consideration and planning. By evaluating your cofounder’s contribution, considering the industry standard, deciding on vesting schedules, thinking about future funding rounds, and having an open dialogue, you can ensure that both parties are fairly compensated for their contributions to the company. It’s also essential to consult with industry experts and legal professionals to ensure that you’re making a fair deal that protects the company’s long-term success.
Present Your Offer
The time has come. You are ready to present your offer to your potential co-founder. If you’ve made it this far, you’re likely to get a yes from them. If you’re at this step and you’re still questioning whether you will get a yes or a no, I wouldn’t present your offer just yet. Ask them what would hold them back from potentially moving forward. There are a few closing techniques that you can do here, but the last thing you’d want to do is ask for the yes before you have a chance to ensure that all of their questions are met. If you are approaching someone with technical skills, you must be more proficient than just the technical side.
Now, if you feel good about it and your potential co-founder has been openly communicating since the start, the little things will work themselves out. Just ensure you are writing everything down and keeping it in a contract.
Sign Your Contract
This may be the easiest step of them all. Make sure you have all of the X’s and O’s on paper, a lawyer has revised and advised each line, and you both are comfortable. Once it’s signed, you’re ready to get your business started and get going on what could be the best decision you two have ever made.