Venture capital funds generally don’t like investing in solo founders. Statistics show that investments in teams of cofounders are more likely to generate positive returns. That said, there are plenty of outliers and exceptions. And in many cases, it’s precisely the dynamic between founders that causes a project to go off track.
Why does this happen?
First, there needs to be very precise alignment on vision. At the beginning, when the goal, the dream, and the long-term vision are still far away, it can feel like cofounders are walking in the same direction. But if things go well, you soon move further down the road, and that’s when one founder may want to turn left while the other wants to go right. The broad direction may have been aligned at the start; the detailed one often isn’t.
Second, there must be alignment in life stage, or at least a clear acknowledgment if there isn’t. It’s not the same if one founder is single, with no children and no partner, willing to bet everything on the product, while another has a large family, a more conservative profile, and is at a stage in life where taking less risk feels more appropriate, even if it means lower potential upside. If cofounders don’t have the same capacity or willingness to make a similar push, and this conversation hasn’t been openly addressed, problems are very likely to surface later on.
Third, there is economic alignment. This is an especially delicate issue. As the business evolves, as roles change, or as perceptions shift regarding each founder’s contribution, friction can easily arise. The original equity split may no longer feel fair to one of the cofounders over time. Without a doubt, this can become one of the biggest sources of conflict within a founding team.
This is an extremely complex topic. To mitigate the risks, difficult conversations need to happen early: about equity, about the detailed vision (even at a very long-term level) and these discussions should continue on a regular, structured basis. It’s also critical to honestly assess each founder’s personal life stage.
In any case, alignment will never be perfect. What tends to work best is building a culture of disagree and commit. Which means cofounders operating as a true team, even when one of them may not fully agree with the final decision.
