How to find cofounder fit

Team dynamics are one of the biggest indicators of startup success … since everything else can change. 

“Market conditions fluctuate, ideas pivot and it's too early to analyse financial data, traction and product quality” says Franziska Schildbach , Senior venture development analyst at Atlantic Labs and FoodLabs.

However, it’s tough finding a cofounder – and riding it out. 25% of founding teams at VC-backed startups break up … and most breakups happen in the first two years of founding. So what enables founding teams to stand the test of time? 

We teamed up with not-for-profit ‘future founder’ community Embarc , early-stage investor HEARTFELT_ and our sister fund FoodLabs to explore the theme of “finding cofounder fit.” 

The discussion, expertly moderated by FOMO Berlin founder Cephas Ndubueze , featured the perspectives of: 

• Pascal Grimm , CEO and cofounder of nutrition and lifestyle management app Una Health . 
• Eliza-Marija Hirvensalo CMO and cofounder of dog training app Dogo - your dog's favourite app . 
• Johannes Roggendorf CEO and founder of healthtech startup MEDWING . 

Here’s what we learned: 

1/ Personal dynamics outweigh ‘skills’ 

60% of founding teams break-up due to personal reasons – causes of relationship ruptures range from work ethic to leadership style. 

“Technical fit is important, but personal fit is always more important,” said Roggendorf. “You can learn technical skills…however personality clashes are hard to resolve.” 

So take the time to get to know prospective cofounders …”date” around and ensure you’re aligned on values, goals and working style before joining forces. “Spend a weekend working together … or longer if you can,” said Schildbach. 

“Technical fit is important, but personal fit is always more important” – Johannes Roggendorf, CEO and founder, MEDWING

2/ Balance the cap table equally – during the early days 

Execution is everything in the early days – so strike an equal balance on equity…while so much of the work is still ahead of you. 

Hirvensalo cofounded DOGO with a married couple – they’d already been building the startup for one year. Equity was initially imbalanced, but she increased her percentage over time. “We recognised there was inequality and wrote ‘the DOGO pact’” she said. 

You can set up a vesting period … to avoid an exited cofounder leaving with a significant stake.

“Vesting is key – every founder friend that didn’t do it ended up in a fight” – Pascal Grimm, CEO and cofounder, Una Health

3/ Debate within the founding team – but go to the team with ‘one voice’

Debate between cofounders is healthy – but it’s crucial to communicate as ‘one voice’ to the team. 

“You have to be clear as a group – you don’t want your team to think the founders don’t know where to go” said Roggendorf. 

Set up regular touchpoints to flesh out tensions. “Once per week we have a 30-minute check-in, that’s outside of the business context…we also have a business coach” said Grimm. 

“Tensions bring you closer together than a false harmony” – Eliza-Marija Hirvensalo, CMO and cofounder, DOGO

4/ Breakups don’t mean failure 

Founding teams of three to four are ideal – since it’s likely for at least one founder to churn, said Schildbach. 

However, breakups don’t mean the end of the road for the business. “You’re building a company…not just the relationship. The way you work and what you need to do will change over time…always put the company first” said Roggendorf.