Co-founder Alignment on Finances

Co-founder alignment on finances is important. Just as many divorcees cite disagreements over finances as a root source of the fracture, startup co-founders should also look to avoid those fundamental disagreements.

There is a wide spectrum of approaches startup founders can take towards finances. Some may live high on the hog, oft quoting the phrase “you have to spend money to make money.” Others may be penny pinchers to the point of squeezing the life out of the startup. Most of us probably sit somewhere between those two perspectives.

There is not necessarily a right answer to the best approach. However, whatever the approach, alignment in the co-founder relationship will make the startup stronger and provide a healthy basis for a functional operations plan.

Alignment in matters of spending (e.g. salaries, rent expenses, etc), raising equity capital, and price points for potential M&A activity are critical. In this we’ve been lucky as co-founders to naturally be aligned on the most important financial matters.

What are your thoughts on the importance of co-founder alignment with respect to finances?