Building Your Early Startup Core Team
In the early stages of startup growth, it is critical to have a balanced and strong core team of founders. Here’s why those two words matter. Your team must be balanced - filling key functional roles necessary to operationalize. It must also be strong - excelling within those functional areas to get the company to the next inflection point. This quote from our recent guest #DreamitDose perfectly encapsulates this thinking.
We brought on Caya (CEO of Slidebean) to provide a smart framework on how to find the right cofounders that can hit this mark. In Caya’s view, there are at least two types of founders you’ll need on your team: “The Hustler” (skilled in business development, marketing, sales, finance) and “The Techie” (skilled in coding, technical strategy, product development). The challenges you’ll face in finding cofounders will vary depending on which persona describes you.
Finding Your Cofounder
Hustler Founder’s Dilemma
You’ve got an idea, all you need is someone to build it. But convincing a “Techie” founder type to leave their stable job is harder than it seems. Full-stack developers can easily make $150k working with someone else so you can’t outbid funded tech companies for talent with money alone. They’ll have to believe in your vision to take this leap - which is a skill you’ll need to master as a “Hustler” founder.
Tech Founder’s Dilemma
Product people usually have it easier. As a “Techie” founder, you can build a product and get it to market but you may struggle with scale and distribution. Your skillset may also cause you to build the wrong product by missing key customer pain points “Hustler” founders tend to pick up on. Growth is a critical functional role that can make or break the business. What good is a product with no customers?
Time management is key for solo founders balancing both roles on top of fundraising. It’s near impossible to split yourself in three - that’s why investors are generally skeptical of solo founder startups.
Don’t Hire Outside Talent To Fill These Roles
High-caliber talent is expensive.
CTO/COO market salaries are roughly $150k.
Marketing and development agencies are pricey and add margin
Time loss, since outsourced talent tends to move comparatively slower
Caya points out that, “nobody who is an external agent will be happy and willing to pull an all-nighter for you. Cofounders are willing to do it because they’re full invested in this.”
Remember, early investors don’t want to pay market rates for talent. Angels and early-stage investors generally don’t want the majority of your use of funds going to outsourced talent. They want to see that you’re clever on more than one axis and spend capital efficiently.
Tips For Your Cofounder Search
Here are 6 simple tips to find the right cofounders or core team members for your startup.
Approach recruitment like dating - get to know each other and flirt before you commit.
Don’t try to sell them on the idea - it’s better to first confirm they recognize the problem and market opportunity.
Show you embrace feedback - get comfortable with contrarian viewpoints, doubt, and skepticism.
Be ready for the long haul - Cofounding a company takes 7-10 years on average. That’s longer than average marriage in the United States.
Don’t expect investors to fund your dating - take your time to make the right call of cofounders.
Choose your partners wisely - whether it’s $100k in revenue or another relative inflection point, make sure your cofounders can get there without hiring any external talent.
Watch Caya’s full Dreamit Dose below. Check out Slidebean to design your next pitch deck.
By Elliot Levy, Healthtech Associate at Dreamit Ventures
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