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Should you co-found a company with your friend? And how do you split the equity?

If you’re talking with cofounders about launching a new business, you’re fundamentally recruiting someone to take the job of partnering with you for the next decade.  I see a lot of founders who do less due diligence than I think ideal before making that long-term commitment.

Just knowing one another for a long time is not sufficient.  I suggest read Ready to Join a New Management Team? Here’s How to Do Your Due Diligence First.

Once you have established that you’ve identified the right cofounder(s), the biggest pain point is typically and unsurprisingly the equity split.  I suggest:

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  1. […] Is starting a company with a friend a good idea? David Teten digs into why and how to do business with friends and how to split equity. […]