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Finding Startup Developers - First Email Contact

SoCal CTO

Here is the most recent version of an all too common email inquiry from a startup founder. The above email is SO BAD that I feel compelled to treat this email as a special case so maybe I can help other founders before they send this email. Startup and Founder Backgrounds This is a cold email.

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Equity-Only CTO and Equity-Only Developers

SoCal CTO

I had a recent email dialog with the founder of a company looking for a CTO for their startup. We had several emails back and forth where he provided basic details on the concept. Understand where they were in terms of being able to pay or was this equity-only (sweat equity only). Was it a Startup Founder Developer Gap ?

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What if you and your investors don’t agree on an exit?

Berkonomics

Of course, even though that is your contract with the investors, way over half of those implied contracts never work out that way. Of course, you will find yourself in opposition to your investors and some of most of your board members if you do this after taking outside investment. What if you later decide to just keep control?

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The best advice startups will never follow

Berkonomics

The problem, of course, comes if the business fails. Do take loans from sophisticated investors only after you have tried everything to get them to purchase equity…. A well–phrased ‘no’ could well be a step toward a correction of course and a later ‘yes.’. Every contact should be a learning experience.

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An economics lesson for growing companies

Berkonomics

It may not be equity. Venture or angel-financed companies with plenty of working capital sometimes are immune to this working capital need for some time into their growth, but at some point, it will become clear that the cheapest form of finance is not equity in a growing enterprise. Back to loans costing less than dilution of equity.

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Your business: Grow it and hold it?

Berkonomics

Of course, even though that is your contract with the investors, way over half of those implied contracts never work out that way. Email readers, continue here…] If you have no intention of giving up ownership or even control over time, state that early and plan accordingly.

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Finding a Technical Cofounder for Your Startup

SoCal CTO

I've recently received several emails from people looking for a technical cofounder for their startup. Here's an example of that kind of email. Of course, you will want to figure out a bit more about the specifics of what this developer needs to know vs. can learn. The bad news is that they can get a good paying job anytime.

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