Choosing the right co-founder is one of the most crucial decisions for a startup’s success. These questions will help facilitate honest discussions and set the foundation for a strong working relationship. This guide is based on insights from Y Combinator’s blog post and a detailed Reddit discussion on co-founder relationships.
1. Why do you want to do this startup? What are your personal goals here, both financial and non-financial?
Understanding motivations helps ensure alignment and commitment.
2. What will our roles and titles be? How will we divide responsibilities? Who will be CEO?
Roles inevitably evolve, but clarity on initial responsibilities and decision-making is crucial.
- If co-founders can’t agree on who’s CEO, that’s usually a sign of unclear responsibilities.
- The CEO typically focuses on fundraising, sales, and product strategy, while the CTO leads technical execution.
- Co-CEOs can work if both are willing to compromise, but having one clear decision-maker is often more effective.
- Garry Tan discusses Co-CEOs here.
3. Who has the last say?
A structured decision-making process avoids deadlocks and ensures efficiency.
- In high-pressure situations (e.g., investor meetings), who speaks?
- When decisions need to be made quickly, who takes charge?
- Are there areas where leadership should shift depending on expertise?
- One co-founder may be better suited for external relations (investors, customers), while the other leads internal execution.
- Be mindful of fatigue—if one co-founder is running on no sleep, they shouldn’t be making critical decisions.
4. How will we split up equity?
Equity discussions should be handled early. YC’s co-founder matching manual provides guidance.
5. Where will the company be based? Where will we each live? Will we work together in-person or remotely?
Logistical alignment ensures smooth operations.
6. What idea will we work on? Are you open to pivoting?
Startups often need to pivot—establishing flexibility is essential.
- Vision can (and should) change based on product direction and customer needs.
- Who is driving the vision, and are both founders aligned on it?
- Does the current vision excite both founders and the users?
- If there’s disagreement on vision, what influences each perspective?
- Sometimes, different backgrounds make it difficult to fully grasp the same pain points, which can cause misalignment.
7. What needs to happen for us to go full-time?
Define the conditions under which you will fully commit, e.g., raising funding or securing customers.
8. What is your personal financial situation? Can you work for free, and for how long? Will either of us invest personal money?
Financial alignment helps prevent surprises down the road.
9. What will our working schedule be? Are there non-work commitments that matter to you?
Expectations around workload and boundaries prevent burnout and resentment.
- If co-founders don’t have social interactions, neither will employees.
- Casual team gatherings can foster a stronger work culture.
- Co-founders set the tone—if they never grab dinner together, why would employees want to bond outside of work?
10. How will we build our team? What culture and values matter to us?
Even early on, defining company culture influences hiring decisions.
- Do we want an in-person or remote-first team?
- How do we ensure we maintain our cultural values as we scale?
- What is our approach to hiring and managing people?
11. What will we do if we disagree on an important decision? What if we decide we don’t want to work together anymore?
Conflict resolution and exit strategies should be addressed before tensions arise.
- If we have a major disagreement, what’s the process for resolving it?
- Do we need an external advisor or mentor to help mediate tough decisions?
- If one co-founder wants to leave, how do we ensure a smooth transition?
12. Would we sell this for $5M? $100M? Are we waiting for the billion-dollar exit?
It’s crucial to understand long-term expectations—some founders are happy with an early acquisition, while others want to build a unicorn.
- What’s our personal goal with this company? Financial independence, industry impact, IPO?
- If an offer comes in at $100M in year 3, do we take it or keep growing?
13. Legal & Conflict of Interest Questions
These questions help uncover hidden risks that could impact the company later.
- Have you ever been fired, gone to jail, or done anything that would materially impact your time with the company?
- Do you sit on any boards of companies, and do you have any conflicts of interest with our project?
- Do you have an active non-compete clause?
14. Will any of us be investing cash in the company? If so, how is this treated?
This is especially important in bootstrapped startups where one founder might be putting in personal funds.
- Is the investment structured as debt, convertible debt, or equity?
- If it’s equity, does the investing founder receive a different class of shares?
- How do we balance financial vs. sweat equity contributions?
15. What happens if one of us wants to step back from the company or take on another commitment?
How do we handle external commitments?
- Are side projects or advisory roles allowed, or are we expected to be 100% focused?
- If one of us wants to step back temporarily, how do we handle that?
Performance & Role Adjustments
How have you found your performance and how have you found your co-founder’s performance? What can you do better?
- Each co-founder should first assess their own performance before critiquing the other.
- If someone lacks self-awareness, they should be open to structured feedback.
- Be mindful of how feedback is delivered—intention matters as much as the message.
- The GROW framework is a useful approach to feedback.
Do we need to consider any role switches or does anyone think they can do a particular activity better?
- If one co-founder excels at investor relations, should they own that function?
- If another co-founder has strong product instincts, should they lead roadmap decisions?
- If there's unvoiced frustration about responsibilities, now is the time to address it.
Final Thoughts
Answering these questions openly and honestly will help set a strong foundation for your startup. Misalignment between co-founders is one of the top reasons startups fail—addressing these topics early can save you from future conflict and uncertainty.
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