Looking For a Co-Founder for a Startup
No, not me. This guy. I stumbled across this ad today and thought it was a good example for how not to start a company.
- The programmer will not be paid but will receive a stake in the company
I am in the process of writing a business plan for a music streaming and social networking website similar to last.fm. I think I have a great idea and I am looking for a partner to join me in this venture.
My partner must:
• be an experienced computer programmer/engineer here in Chicago who can turn this idea into a living breathing website. (This will involve creating some technologies that don’t exist yet.)
• be committed to this project and willing to meet frequently (potentially multiple times a week)
• be experienced or have a deep understanding of building complex websites (e.g. facebook, myspace, last.fm)
• have a working knowledge of various internet advertising models
• have deep familiarity with online music streaming sites such as last.fm
• be willing to keep this project strictly confidential and sign confidentiality agreementsI am not a computer programmer, but I am a salesman, I have great marketing ideas and I am looking for the “tech” brains behind this operation. I would like this website to be revenue generating by the Fall of 2009.
I am pragmatic and realize that 60% of something is better than 100% of nothing, which is why I am offering a partnership.
I will NOT discuss the details of this website over email. Prior to an in person interview you MUST sign a non-disclosure/confidentiality agreement.
Please respond with a cover letter and resume. Include at least 3 sample sites with brief description of involvement with each.
Thanks
Here are my concerns:
- The “founder” appears to lack any relevant experience starting companies – first he talks about non-disclosure agreements. Yikes, red flag immediately. Then he implies he will build the next Facebook and wants to have it revenue-generating by Fall 2009 (has anyone looked at the problems Facebook is having?). Then he implies a 60-40 split which suggests he has no venture capital experience and no experience setting up equity for a company.
- The “founder” is not looking for a “co-founder,” he’s looking for an employee – The writing is all over the wall on this one. First, this is a job description, and it’s posted on a job board. Second, the nature of the work does not imply “partnership” but rather “subordinate.” Third, who looks for a co-founder on a job site?
- The “programmer” is not paid with anything but equity – maybe I’m just a little sensitive to free lately – but if I’m an experienced worker I wouldn’t want to build a substantial website by myself (which, by the way, will not be up and running and revenue-generating by Fall 2009) for a company that is not worth anything where I’m probably not really a founder in terms of the relationship. Even start-ups don’t live in an alternate universe where there is no need for cash.
Now, I don’t mean to make fun of this guy. I don’t even know this guy. But the ad seemed fishy to me and I would hate for someone to get caught up in a dream where they were the next Mark Zuckerberg. What do you guys think? How do you evaluate potential business opportunities? Where do you start when starting a company?
Monica O'Brien is the Director of Digital at Fizz and author of the book Social Pollination, which helps businesses leverage social media for crazy growth!
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Couldn’t agree more Monica. I call it ‘guy with an idea’ syndrome and I’ve been burned by these types before – both in wasted time, effort. and resources. No startup experience, no relevant knowledge, entirely no way of making it happen without a ‘techie’ or some other subject area expert they’re grasciously willing to split ‘profits’ with. Red flag, red flag, red flag.
I own a medium size interactive agency in Denver and get approached for ‘partnerships’ like this almost every week. They’re dangerous, plain and simple. 9 times out of 10 its someone that ‘used’ to make ‘a lot’ of money in mortgages or real estate – they spent what they made during the 04 – 07 run-up on cars/homes/etc., the house of cards came crumbling down and are now scrambling for something/anything to maintain a lifestyle they can no longer support. And they want to do it off the back of someone ’s hard earned talent and expertise. Because ‘techies’ and us ‘web people’ who invest our lives into being competent at this for some reason – need their brilliant idea. Why would we have our own ideas – right?
I always get a kick out of the ones that take the posture of interviewing me and the rather talented team I’ve assembled. And always toting a non disclosure they cut/paste from somewhere…junior varsity in an NFL world.
You’re right – this person is dangerously ignorant. He’s an idea-guy of the worst sort – he thinks his grand idea is actually worth something (apparently 60% of something with zero equity or valuation). The truth is ideas are worth squat. Competent planning and execution are how new markets are created & sustained. This post is on the right track with pursuing a programming partner- but his track record earns him the right to ask some of these things: http://www.carsonified.com/2008/12/
Nicely designed blog by the way. Found you via Mashable – keep up the good writing.
Bill
P.S. – my wife and I use to have similar issues with finances until we both read Robert Kiyosaki’s Rich Dad Poor Dad. Changed our lives and makes for a healthy marriage. 10 years, 3 kids and 4 companies (one of which we sold in 06) later – that book (and others in the series) has been a great road map to get and keep our family on the same page with money. If you want to get out of the financial fish bowl our education system and culture has neglected to teach us about – read that book. Best wishes in 09!
I think the best part about the ad is this:
(This will involve creating some technologies that don’t exist yet.)
For someone who admittedly says he’s not a tech person he’s assuming that existing technology can’t do what his vision calls for. It’s a tall order to ask someone to come up with programming languages, tools, etc. that don’t exist yet. He should sign an NDA on his own idea and not talk about it anymore with anyone else.
Ok that was harsh, i apologize. Great site! Mind if I link to from my blog?
Bill, thanks for the comment. I’m glad I’m not the only person who feels this way.
That’s something I don’t understand – why don’t people think “techies” have good ideas? I have great ideas, and I have the technical know-how to implement them too. The two skills are not mutually exclusive.
Thanks for the PS. I’ve heard a lot of good things about that book, but your recommendation is the first that makes me actually want to read it. I’ll have to grab a copy for my husband and me. Of course, we’re still pretty new to our marriage, so hopefully our differences will iron themselves out over the next 5-10 years or so
Rikin,
Your comment cracked me up! Feel free to link to whatever you’d like.