ÉCOLE POLYTECHNIQUE –

Angel or Demon

How (not to ?) Choose your Co-Founders

Huy Nguyen Trieu

19 November 2014

ÉCOLE POLYTECHNIQUE –

FROM POLYTECHNIQUE TO ENTREPRENEUR TO BANKER IN LOVE WITH STARTUPS

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MY BACKGROUND

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•  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

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The views expressed are solely those of the author in his private capacity

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UKIBI

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•  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)

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WHAT CAN GO WRONG WITH CO-FOUNDERS?

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•  ‘ 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.

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Why ? Different objectives. Incompatible personalities.

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WHICH CO-FOUNDER WOULD YOU CHOOSE?

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•  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?

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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

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CHOOSING CO-FOUNDERS BASED ON THEIR CV…

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•  ... is like using Tinder to find your wife / husband!

•  Impressive skills or expertise say nothing about objectives, ethics or compatible personalities

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Why commit to a co-founder faster than on Tinder?

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TYPICAL PROCESS THAT LEADS TO WRONG CO-FOUNDERS

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•  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.

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Danger! Choosing a co-founder cannot be a passive process

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IS THERE A SECRET RECIPE TO CHOOSE YOUR CO-FOUNDER?

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•  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

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2 founders is powerful. 1 is possible. 3 too. More not really… Mix of technical and sales skills works well

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HOW DO YOU CHOOSE THE RIGHT CO-FOUNDER ?

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•  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

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DO YOU ALWAYS NEED TO AGREE WITH YOUR CO-FOUNDER?

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•  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

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WHAT ELSE TO CONSIDER?

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•  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

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CONCLUSION FOR BRIGHT YOUNG ENGINEERS

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•  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.

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THANK YOU!

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www.disruptivefinance.co.uk

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My blog on the tech revolution in finance:

Twitter:

www.twitter.com/huynguyentrieu

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