Mindset

How well do you know your co-founder(s)? Part 2

The world of ventures is full of stories about founders breaking up, fighting over capital or disagreeing on strategy or on how to run the business. I myself have lived through this, almost constantly, for five years, and it's a killer. It all comes down to one word: mindset. If the founding team is misaligned on key topics such as strategy, people management, or company dynamics, the company will eventually hit a wall. Moreover, when shares are involved, the situation can become even messier, resulting in unnecessarily high legal fees… and many sleepless nights.

To avoid this, carefully consider the person you bring on board before signing the articles of association and distributing shares. Ideally, this should be someone you know well and have worked with in the past. It is also crucial to ensure that your attitudes toward people management, particularly in difficult situations, align closely. While the cost of adding a shareholder later may be relatively low, the legal fees associated with repurchasing shares from an unhappy co-founder can be significant.

Secondly, lay out every aspect of your collaboration as a co-founding team in your shareholder agreement. This will be helpful when things go sour. Think about all possible situations where a disagreement among founders can occur, and collaboratively draft your understanding of how you will address each situation as a founding team.

None of the above really happened. Because again I wanted to get things moving fast, I founded flyiin with two individuals whom I had no prior experience working with. This turned out to be a(nother) major mistake. One of them left the company after only six months. He did not share our original consumer-facing vision, although we had been clear about that focus from the beginning. The breakup cost us thousands of euros and required a lot of legal back-and-forth.

In 2018, the other individual left flyiin when we decided to shift our focus and create a platform for other consumer-facing travel brands. This decision brought about more legal fees, a payout, and some heated discussions that I could have done without. Nevertheless, it was a relief because I had never been completely convinced of his long-term commitment to the venture.

When I brought on my new (and final) co-founder, I hoped for a different experience. He had already worked with me for a couple of years as lead developer of our original Air Travel Marketplace. However, our views on a growing number of topics—such as people management, goal setting, and day-to-day planning—gradually diverged. This misalignment stemmed from our different backgrounds and experiences. It created tension and led to several animated disputes between us—a situation many entrepreneurs would tell you is common. Nevertheless, what I retain from this partnership is his unwavering loyalty and commitment throughout the entire journey, for which I'm forever grateful.

Key Takeaway #6

Do not make anyone a founder until you are completely sure that you can work with them. Reach an agreement with them on all key aspects of the venture before spending the first euros or dollars. If you are unable to do so, it is better to work alone at first. Seriously.