When I was doing freelance development, I had about one pitch per week for an equity-only opportunity. I fell for a couple, learned my lesson, but now I never accept these kinds of deals, even though a lot of the ideas and even teams seem solid. There are usually several reasons, but mostly it comes down to them not offering enough equity. These “startups” are almost always mostly-non-technical founders offering 1-2% premoney for a “lead developer” position. In my view, the very fact that they feel that the technical development of a web startup is only worth a couple percent speaks volumes.
So if you’re a non-technical person with an idea for a tech startup and you need to find a cofounder, how do you do it? The first step is to stop thinking about what you can offer them to join your startup, and start thinking about what you can offer them, period.
If you’re starting a web company and you can’t code, there are a few things you can bring to the table, including:
- experience managing a successful startup
- sales and marketing experience, especially in a startup environment
- valuable connections, especially in a startup environment
- money
If you have the first three, you’re probably not going to have a tough time finding developers willing to work with you, so you probably won’t be reading this post. And if you had the fourth one, you could just hire developers, so what’s left? I’ll tell you what’s not left: your idea. The reality is that the only thing the vast majority of non-technical founders can really offer is the ability to hustle and work their ass off to support the development effort. And that’s not something most of them want to hear or want to do.
My advice: if you’re looking for a skilled developer for a software startup, consider them an equal founder and split the pie accordingly. And then work 10x as hard as them to make up for the fact that they’re probably better off without you than you are without them.
Or maybe this is just the arrogant developer in me? Feel free to post counter-examples where non-technical founders didn’t bring any of the above 4 things to the table and the startup was a success.
You might also enjoy:
- Why can’t I find a good IDE?
- How to always have work
- 6 Lessons from Four Months in the PIE Startup Incubator
- Twenty-five tomatoes: experiments in micro-startups
- Magento Ecommerce: Impressions
You should subscribe and follow me on Twitter here.
Here here. LOL at a lot of these "idea guys". It's like that Thomas Edison quote, "Vision without execution is a hallucination". If I had a dollar for every time somebody tried to recruit me with an equity proposition and nothing else, while seriously overestimating the value of their great idea, I'd be a ridiculously wealthy man. Most of them are silenced by just opening MY ideas folder to them.
I got on board w/ a tech startup with some trusted friends. So far we've busted our asses but they've only coughed up a few percent equality towards us… Sucks. One hand I've busted my ass and I don't want to quit and the other is I feel like they're being really greedy.
Hi Ryan,
I am the owner of a web-based software business that is already in production and moving along well. I have a background in technology but am not a developer so I contracted the build out. Now I am looking for someone to co-found the technical side of things and I would be more than happy to offer way more than 1 to 2% premoney. I want to build the company with someone that see that value and wants to participate in the company growth.
I have been busting my behind getting the word out in every way I can about this product but software will always needs updates and added features. So if you know a great developer that wants to work with a persistent, never gives up, business owner feel free to send them my way