How Do You Find a Cofounder? Kat Manalac Explains YC’s Approach

TL;DR

The easiest way to find a potential cofounder is through school or work, where you can observe their performance, communication, and teamwork. Kat Manalac says 94% of the top YC companies have cofounders, and YC favors balanced teams with shared work history and equal equity splits. Read on for specific meeting patterns, selection criteria, and equity guidance.

Transcript

hi I'm cat mini Alec and I'm a partner at Y Combinator I've been at YC for five years now and I've seen about 1,300 companies go through the program today I'm going to answer the question how do I meet a co-founder first I'm going to talk about whether you even need a co-founder second we'll talk about where some of the top YC companies where their... Read More

Key Insights

• "having a co-founder gives you someone not only to split tasks with but someone to split the emotional burden of starting a company with" (0:57)
• "the easiest way to meet a potential co-founder is through school or work and that makes sense because you have context" (1:40)
• "we like to see that you've worked on something together in the past" (2:24)
• "we want to see some evidence that your team will stick together for the long haul" (2:28)
• "94% of the top YC companies have co-founders and typically they met at school or work" (3:31)

Questions & Answers

Q: How do you meet a potential cofounder?

The easiest route is through school or work because those settings provide useful context. You may have seen the person perform, developed respect for their work, and completed a project together.

Q: Do you need a cofounder to build a successful company?

A solo founder can build a successful company, but the transcript says it is hard. Solo founders started 12% of the companies funded in YC’s last batch, while only three of the top 50 companies by valuation were started by solo founders.

Q: Where did top YC founding teams meet?

Among YC companies valued at over a hundred million, about half of the teams met in school, mostly during their undergraduate years. About 20 percent met at work, and about 16 percent were introduced by mutual friends.

Q: Where did female founders meet their cofounders?

Among the female founders YC funded, about 33 percent of teams met at school and about 20 percent met at work. Just under 10 percent met at events.

Q: Why does having a cofounder help?

A cofounder gives you someone with whom you can split tasks. They can also share the emotional burden of starting a company.

Q: What does YC look for in a cofounding team?

YC likes well-balanced teams that can build the proposed product and sell it. It also values clear, succinct communication and evidence that the founders have worked together and will remain committed for the long haul.

Q: How long should cofounders work together before applying to YC?

The transcript gives no required duration, but YC prefers teams that have been working together for a while. Prior collaboration provides evidence of how well the founders work and communicate as a team.

Q: Should cofounders split equity equally?

YC likes to see an even equity split, even when one founder developed the idea and added another founder six months later. With an average time to IPO or exit of about 8 to 10 years, most of the company’s life remains ahead, so each founder should feel equally invested.

Summary & Key Takeaways

• Starting a successful company as a solo founder is possible but challenging.

• Most successful co-founders meet in school or work environments.

• YC looks for well-balanced teams with a history of working together and an equal equity split.