Context:
For the last decade, tech incubators and scaled seed investors have basically made having a co-founder a gospel: “Show me your founding team. Who are your co-founders?” If you’ve ever pitched at a YC Demo day or any of the big seed shops, you know the drill. But why is this such a big deal?
Spoiler: it’s not about your company’s long-term success—it’s about their need for shortcuts and risk reduction at scale.
Here’s the dirty little secret: when you’re running a seed fund or an incubator at scale, you don’t have time to diligence every “kid with an idea.” So, you reach for easy signals. Can this person recruit? Has anyone else with a pulse and a LinkedIn profile co-signed this madness? If the answer is yes, great! The investor feels a little less crazy writing that first check.
But here’s the flip side: does having co-founders actually make your company better, or does it just make VCs feel better? My take: usually, it’s the latter.
Why?
Speed and Execution: Startups live and die on execution. You can’t afford endless debates or consensus-building. Someone needs to be in charge, fast. In reality, that means a single real founder. Sure, at Google-scale, diversity of thought is nice, but in the early innings? It’s a luxury you can’t afford.
Leadership (aka Balls): Founding groups of “equals” are often a sign that nobody’s willing to actually put their name and reputation on the line. You need one leader—and, yes, followers. “Co-founder” is a nice title, but it doesn’t signal who’s really leading.
Hard Calls, Hard Conversations: Even if you start as a group, someone eventually has to be the asshole and say, “This is my company.” Equal splits and endless consensus don’t win. Aggression, ownership, and the willingness to make the hard calls do.
Bottom line: Having a bunch of co-founders is a great way for investors to avoid looking stupid at the seed stage. But if you want to build something truly great, you probably want one real founder, and maybe a few people with 5% and a title if you feel like it. Don’t let the cult of the co-founder distract you from what actually moves the needle.
Market Signal: If you’re fundraising, yes, having a co-founder can help you clear the first filter. But don’t confuse that with what it takes to actually build and win. Investors are looking for easy signals. You should be looking for what actually works.