Y Combinator Co Founder Agreement
Your start-up agreement must state whether any of the founders have contributed personal funds to the company and describe the conditions for using the capital. To demonstrate your commitment and protect valuable business information, your FA should also include a standard privacy clause. And so we optimize for ourselves so that we don`t have that experience with our founders, and we could leave money on the table as a result. But because I`m going to work with over 100 new companies a year and I`ve worked with over 1,000, almost 2,000 companies, the result is that I`m building this huge alumni base and I can`t have a bunch of assholes taking away everyone`s attention. So, there are still a lot of counter-examples that people are good, but I`d like to believe and what I hope for everyone in the startup school is that you could have a business that is different, that you can believe that it`s a much easier way to run a business than a business that is run by dictatorship and fear. And now that you`re having problems, and a very, very common source of co-founder friction that we see at Y Combinator, that`s where two people really want to be the CEO. Right. And it can sort of . We can see that in Y Combinator interviews where you end up with two people talking about each other, they interrupt each other, they can look at each other with a little content when the other person responds. These are all very, very bad signs, aren`t they. So be honest with yourself, if you think you really care about being the CEO, and you both feel that way, you`re not good co-founders for each other. So just avoid all that pain and heartache and don`t start gathering together.
Ideally, you want to start a business with someone who doesn`t care about these kinds of things when you do, or you`re both indifferent and you`ll find that you choose the one you think is best suited for the role right now, even if that changes at some point in the future. At the beginning of a company, all founders are represented on the board of directors. As a general rule, after the round table, the founders can determine who will represent the company on the board of directors and define the observation rights of the other founders. An observer may attend meetings and discussions of the Board of Directors, but will not have the opportunity to vote on matters. The establishment of observer rights minimizes the risk that co-founders will feel excluded. The co-founders of BlackBuck decided not to write a formal agreement from the beginning. However, they took the time to clearly articulate expectations for responsibilities and division of roles. Aligning with these decisions has allowed his startup to evolve exponentially. Between July and December 2015, they went from three locations with three customers to 54 cities with 50 customers and the team grew from 35 employees to 250. In less than two years, they have developed a technology platform and built a network that has completely revolutionized the Indian truck industry. At the end of 2018, BlackBuck had more than 2,000 locations and served more than 10,000 customers. YC partner Kevin Hale talks about the importance of building a successful working relationship with your co-founders and putting processes in place to maximize your team`s strengths.
So what I would suggest is to make sure you have that conversation. And it`s not a perfect predictor, as people`s goals and ambitions for a startup change over time. I`ve seen people start businesses because, frankly, they just wanted to get rich. And their hope was that in two or three years they could sell the company to a larger company for a good amount. But they came to the company for two to three years, and they loved it so much, they were so excited about the challenge that they kept working on it, and they`re still working on it a decade later. So, that`s perfectly fine. I`m not saying this conversation means you`ll know for sure if your goals and values align over the next decade, which usually takes when a startup succeeds, but at least the conversation gives you a better chance of finding a co-founder with whom you`re aligned at a high level of important things. .