What People Want in a Co-Founder - YC Insights

The Challenge of Finding Co-founders

The path to building a successful, billion-dollar company can be significantly easier for individuals with access to resources like those found at Stanford University or through Y Combinator (YC)-backed startups.

However, entrepreneurs originating from locations such as Lagos, Nigeria, or attending institutions like the University of Nigeria, often face considerably greater obstacles in securing the necessary support to achieve similar outcomes.

Startup School and the Need for Equal Access

Initially designed as an in-person program for early-stage founders, Y Combinator’s Startup School primarily served a privileged demographic.

Recognizing the need for broader accessibility, YC transitioned the program online, enabling participation from founders across the globe and leveling the playing field.

This free program, mirroring the curriculum of YC’s core startup batches, has attracted over 300,000 participants.

Identifying a Key Obstacle: Co-founder Search

Regular Q&A sessions held every Monday with new Startup School members revealed a recurring theme.

According to Catheryn Li, a product engineer at Y Combinator, the most frequent inquiries centered around co-founder acquisition: “The most common question we get is where do I find a co-founder? How do I find the right co-founder? How to find a tech co-founder?”

Data indicated that approximately 20% of YC’s active founders were actively seeking a co-founder, representing a substantial portion of the 300,000-strong participant base.

The Launch of a Co-founder Matching Platform

In response to this identified need, the YC team initiated testing of a co-founder matching platform with select users in January.

The platform was officially launched in July, aiming to connect aspiring founders with complementary skill sets.

Founders utilizing the platform detail their own expertise and the characteristics of their ideal co-founder.

The system then presents a selection of potential candidates whose profiles align with the stated requirements.

How the Matching Process Works

A connection is established when there is a mutual overlap in needs and expressed interest between founders.

For instance, a founder with a background in engineering seeking a sales or marketing co-founder would be matched with individuals possessing those skills and actively searching for an engineering counterpart.

Early Results and Platform Usage

Within the first three and a half months of operation, the YC co-founder matching platform saw the creation of over 16,000 co-founder profiles.

These founders extended 130,000 matching invitations, resulting in 33,000 successful matches with a 25% acceptance rate.

Initial Trends and Future Analysis

While it is premature to assess the platform’s long-term impact, Y Combinator representatives, including Li and Kat Mañalac, head of outreach, have begun analyzing short-term trends.

These initial observations have revealed both expected and surprising insights into the preferences and priorities of founders seeking co-founders.

Geographic Distribution

Profiles on the co-founder matching platform originated from 146 nations globally, with 40% stemming from the United States and the remaining 60% distributed across 145 other countries.

The rise of remote work and the impact of the pandemic have significantly altered founders’ perspectives regarding the importance of location when selecting a co-founder. The report indicates that, for 50% of founders, a co-founder’s geographic location is not a primary consideration.

Li explained that initial assumptions about the necessity of proximity for in-person meetings proved incorrect. “We initially believed finding a locally-based co-founder would be crucial,” he stated, “but it became apparent that this was no longer a significant factor for many.”

A more detailed analysis of founders’ locations reveals parallels with the demographic composition of a typical Y Combinator (YC) cohort and the countries represented within the matching program.

India represents the largest contingent outside of the U.S., accounting for 14% of all profiles—a figure consistent with both the matching platform and YC’s latest batch. The United Kingdom, Canada, and Nigeria follow in representation.

Continentally, the distribution is as follows: North America comprises 46%, Asia 23%, Europe 21%, Africa 6%, South America 3%, and Australia 2%.

However, the data from successful matches on the platform demonstrates a preference for closer connections. Specifically, 55% of matches involve founders in the same country, 69% connect founders on the same continent, and 61% link founders operating within a three-hour time zone difference.

Match Proximity Details

• 55% of matches are between founders in the same country.
• 69% of matches are between founders on the same continent.
• 61% of matches are between founders within three time zones of each other.

These statistics suggest that while location may not be a primary requirement, founders still demonstrate a tendency to partner with individuals in relatively close geographic and temporal proximity.

Key Attributes Sought in Co-Founders

Beyond geographical considerations, what qualities are most valued by founders when seeking a business partner? A recent report indicates that commitment and shared passions are paramount. Specifically, 79% of profiles prioritize a co-founder’s dedication to a defined workload during the initial phases of a project.

Furthermore, a substantial 74% of founders express a preference for shared interests with their potential co-founder. These shared interests typically align with established sectors within the startup ecosystem.

Popular Industry Focuses

The matching platform allows founders to indicate multiple areas of interest, and the resulting data closely mirrors the category distribution observed in typical YC (Y Combinator) cohorts. B2B/enterprise solutions were selected by 36% of founders.

Consumer-focused ventures attracted 34% of interest, while Artificial Intelligence (AI) also garnered 34% of selections. Marketplace models were indicated by 32%, and both fintech and e-commerce were chosen by 29% of founders.

Essential Skill Sets

Successful ventures in these sectors require a diverse skillset. The matching platform highlights five skills as particularly valuable: product development, design, engineering, sales & marketing, and operations.

Unsurprisingly, engineering expertise is the most sought-after skill. The report reveals that 63% of founders are seeking a co-founder with engineering capabilities.

Notably, even founders *with* engineering backgrounds often prefer an engineering co-founder, with 44% expressing this preference.

Beyond engineering, 42% of founders desire a co-founder with product management skills. A design-focused co-founder is preferred by 39%, while 37% value expertise in sales and marketing.

Finally, 28% of founders seek a co-founder proficient in operations.

Addressing the Gap: Support for Underrepresented Founders

A common belief within the startup ecosystem suggests that selecting a co-founder who is already well-known – perhaps a friend or former colleague – is the optimal approach.

Research published by the Harvard Business Review in 2011 indicated that established relationships can significantly accelerate the development of effective collaboration, a process that can otherwise require years.

However, Y Combinator’s (YC) co-founder matching platform appears to diverge from this conventional wisdom. Some observers, like one Twitter user, have playfully termed it “co-founder dating,” noting that YC’s Startup School instructors often discourage such an approach.

Li clarifies that YC’s platform operates under a distinct methodology compared to typical co-founder matching services.

“The emphasis isn’t necessarily on the duration of the acquaintance, but rather on the level of comfort and understanding of each other’s work habits,” she explains.

YC’s recommendation, she adds, is that matched individuals do not immediately commit to a co-founding partnership within the program itself. Instead, they are presented with a trial project, designed to facilitate mutual assessment of personality and working styles over a period of weeks or months.

This project is structured with clearly defined objectives and expectations, allowing participants to evaluate compatibility and work preferences.

While it is still early to draw definitive conclusions, the model appears promising. Out of the numerous companies originating from the platform, 50 applied to the Y Combinator Summer batch, with three ultimately being accepted.

Among these is Sequin, a fintech company focused on providing a debit card designed to help women establish credit. The founders, Vrinda Gupta and Mark Thomas, were among the initial users of the matching platform.

Gupta, as a female founder, represents one of the 13% of profiles identifying as women. This statistic reflects the broader global underrepresentation of women in the founding space, a disparity that Mañalac believes YC’s platform can help mitigate.

“A frequent inquiry we receive concerns how to locate a co-founder, particularly from women operating as solo founders. We anticipate this platform will contribute to expanding the pool of women capable of launching companies and securing funding.”

Furthermore, she expresses hope that more aspiring founders from underrepresented groups in international markets will become aware of the platform, enabling them to “connect with others who share a passion for building and potentially launch a company together.”

The platform is also proving valuable to YC alumni. Li shared an example of a female founder from the recent winter batch successfully finding a technical co-founder through the platform; moreover, over 150 alumni are currently utilizing it to identify potential co-founders for new ventures.