Why do so many startups fail because of problems between co-founders? Because entrepreneurs do not spend enough time discussing the important issues with their co-founders BEFORE starting the venture. Presentation at Ecole Polytechnique in France to students of the Master in Technology Innovation and Entrepreneurship.

1. ÉCOLE POLYTECHNIQUE –
Angel or Demon
How (not to ?) Choose your Co-Founders
Huy Nguyen Trieu
19 November 2014

2. ÉCOLE POLYTECHNIQUE –
FROM POLYTECHNIQUE TO ENTREPRENEUR TO
BANKER IN LOVE WITH STARTUPS
INNOVER ET ENTREPRENDRE

3. ÉCOLE POLYTECHNIQUE –
MY BACKGROUND
3
• Education: Polytechnique (X93) + Ponts et
Chaussees + MIT
• Entrepreneur: Co-Founder and CEO Ukibi
(NY / Paris)
• Finance: Managing Director at Citi (London).
Previously RBS and Socgen
• Startups: Mentor startups (StartupBootCamp /
Level 39). Author of blog Disruptive Finance.
Advisory board of Trusting Social and Fintech
Connect. Godfather TheFamily. Citi Mobile
Challenge
INNOVER ET
ENTREPRENDRE
The views expressed are solely those of the author in his private capacity

4. ÉCOLE POLYTECHNIQUE –
UKIBI
4
• Created 1998 in the Silicon Alley
• Concept of self-updating address books: using
social networks 5 years too early!
• 3 co-founders
• Raised 3 rounds of funding : Mars Capital /
Europ@Web / Viventures for total of $15m
• 50 people in NY and Paris
• Board members : Alexandre Mars (CEO Mars
Capital) / JL Gassee (ex CMO Apple) / Patrick
Leleu (ex CEO Bouygues Telecom) / JD
Chamboredon (CTO Viventures)
INNOVER ET
ENTREPRENDRE

5. ÉCOLE POLYTECHNIQUE –
WHAT CAN GO WRONG WITH CO-FOUNDERS?
5
• ‘ He’s too lazy. I spend 16 hours at the office and
he goes home at 9!’
• ‘For her, it’s all about work. She’s a dictator!’
• ‘He doesn’t understand we need to develop
much faster. He’s too theoretical’
• ‘He has absolutely no human skills. He will ruin
our relationship with our investors’
• ‘He doesn’t understand the product, he’s just a
sales man who would sell anything!’
• Etc, etc.
INNOVER ET
ENTREPRENDRE
Why ? Different objectives. Incompatible personalities.

6. ÉCOLE POLYTECHNIQUE –
WHICH CO-FOUNDER WOULD YOU CHOOSE?
6
• You: a bright PhD in computer science. No clue
about sales or marketing
• Your project: a revolutionary big data system
• 3 choices of c0-founders. Whom do you choose?
INNOVER ET
ENTREPRENDRE
Alex
• 28 years old
• Stanford PhD in CS
• Launched one
unsuccessful startup
Sophie
• 35 years old
• Marketing director of
IPO-ed startup
• Speaks 6 languages
Phil
• 38 years old
• Has launched 6
startups
• 5 failed, one still
running

7. ÉCOLE POLYTECHNIQUE –
CHOOSING CO-FOUNDERS BASED ON THEIR CV…
7
• ... is like using Tinder to find your wife /
husband!
• Impressive skills or expertise say nothing about
objectives, ethics or compatible personalities
INNOVER ET
ENTREPRENDRE
Why commit to a co-founder faster than on Tinder?

8. ÉCOLE POLYTECHNIQUE –
TYPICAL PROCESS THAT LEADS TO WRONG CO-FOUNDERS
8
• You want to launch a startup
• While talking to 2 friends, you discuss about
several ideas. You find the next Google!
• You’re very excited, you’ve found an idea, and 2
friends to launch a startup!
• You start working on a prototype and the
business plan
• You need to discuss percentages. A bit tricky
with friends, why not do 33%/33%/33% ?
• Etc, etc.
INNOVER ET
ENTREPRENDRE
Danger! Choosing a co-founder cannot be a passive process

9. ÉCOLE POLYTECHNIQUE –
IS THERE A SECRET RECIPE TO CHOOSE YOUR CO-FOUNDER?
9
• Apple : Steve Jobs + Steve Wozniak +Ronald
Wayne (left after 1 year)
• Google : Sergey Brin + Larry Page
• Microsoft : Bill Gates + Paul Allen
• Oracle : Larry Ellisson + Ed Oates + Bob Miner
• Amazon : Jeff Bezos
• Alibaba : Jack Ma
INNOVER ET
ENTREPRENDRE
2 founders is powerful. 1 is possible. 3 too. More not really…
Mix of technical and sales skills works well

10. ÉCOLE POLYTECHNIQUE –
HOW DO YOU CHOOSE THE RIGHT CO-FOUNDER ?
10
• Who would marry someone based on Tinder?
• The single most important decision in your
startup – don’t take it lightly
• Share and challenge your respective objectives
– including personal objectives
• Be wary of things you don’t know: how do you
choose a marketer when you’re an engineer?
• Think twice before taking a super specialized
co-founder
• Take things slowly and let a way out: vesting
and clear communication
• Get advice from mentors/advisors, even VCs
INNOVER ET
ENTREPRENDRE

11. ÉCOLE POLYTECHNIQUE –
DO YOU ALWAYS NEED TO AGREE WITH YOUR CO-FOUNDER?
11
• YES :
• Need same long-term objectives and vision
• Need same ethics
• NO :
• Different views of the world lead to better
outcome
• Healthy skepticism prevent big mistakes
INNOVER ET
ENTREPRENDRE

12. ÉCOLE POLYTECHNIQUE –
WHAT ELSE TO CONSIDER?
12
• If you lack a specific skill, do you really need a
co-founder or can you hire someone?
• Can an advisory board bring some of the skills
you lack? An advisory board should not be for
‘prestige’
• If you have a doubt, don’t take the plunge. Try
part-time collaboration first.
• What do you do if you chose the wrong co-
founder? Act now! Solve the situation in one
way or another
INNOVER ET
ENTREPRENDRE

13. ÉCOLE POLYTECHNIQUE –
CONCLUSION FOR BRIGHT YOUNG ENGINEERS
13
• Launching a startup right after (during) school
is great. Do it!
• You have: brains, knowledge, energy, no
commitment, low burn rate
• You lack: experience. And communication
skills! Learn them!
• Choosing a co-founder is an active process
• Sharing the same objectives and ethics is key.
Don’t understimate personality clashes
• Advice is available, leverage on it:
Polytechnique / alumni /accelerators, etc.
INNOVER ET
ENTREPRENDRE

14. ÉCOLE POLYTECHNIQUE –
THANK YOU!
14
www.disruptivefinance.co.uk
INNOVER ET
ENTREPRENDRE
My blog on the tech revolution in finance:
Twitter:
www.twitter.com/huynguyentrieu

15. ÉCOLE POLYTECHNIQUE –