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Up to 43% of startup founders ultimately buy out their cofounder due to interpersonal rifts and power struggles. To understand why so many cofounder partnerships end in failure, the authors conducted research on lead founders seeking cofounders, finding that lead founders tend to prioritize skillsets and execution while potential cofounders prioritize interpersonal compatibility. This mismatch in priorities is the root of so many cofounder splits. To overcome this, the authors offer three recommendations for lead founders and cofounders alike: 1) Put yourself in the other person’s shoes, 2) Don’t neglect the interpersonal aspect in initial conversations, and 3) Consider co-creating the idea with a partner.
Choosing a cofounder can be a make-or-break decision for startups. On one hand, cofounders can bring needed skillsets and other resources that an individual founder may lack. On the other hand, however, cofounder relationships can be a source of immense conflict that can prove fatal for a startup. For example, recent evidence suggests that up to 43% of founders are ultimately forced to buy out their cofounder due to interpersonal rifts and power struggles.
