Recently, I spoke at an event that highlighted working as part of a founding team. Check out the video here. Starting a business solo is OK, but I’m a big believer in having a business partner. (Exactly one business partner; teams of three or more are a disaster.) Here’s why:
A good partner increases the likelihood of a positive exit for a company. This increased chance of an exit more than offsets the 50% dilution. Getting paid a million bucks is sweet for the founder. Getting paid two million is even better, but the lifestyle change that comes with that first big win is a lot more significant than the 2nd million. This becomes the biggest conflict between investors and entrepreneurs. The entrepreneur wants an exit. The investor wants a BIG exit.