Is four too many cofounders?

Yes, yes it is. Don't join a big cofounding team.

Why a big cofounding team seems attractive

There's so much to be done at a startup at first, and a bigger cofounding team may seem like a great way to get work done. The mix of skills among cofounders can be broader and there are just more hands to get work done. And, in many states, owners of 20% or more of a company don't need to be paid minimum wage, so if you split equity fairly evenly, you can all donate your free labor.

A big cofounding team can also just be a lot of fun, at least at first. Most bigger cofounder sets are people who worked together before or knew each other from school, and the group already knows their vibe before they choose to work together.

However, most of the large cofounding teams I've come across just haven't worked out. In fact, broken friendships and a damaged business seem to be the most likely outcome.

Why a big cofounding team isn't a good idea.

Mixing friendship and money is a dicey game, especially in a four-way set of relationships (which is six pair relationships, ignoring the dynamic when three of you are together).

Here's what becomes difficult:

Businesses need hierarchies.

Flat works for a while, but over time, complexity grows, and while hierarchies suck, they are far better than any alternatives for managing this complexity. Break the work down into chunks, put someone in charge of each, and have someone managing the managers. This is a tough relationship when you're going from friends or classmates to "my friend can fire me". Many of these relationships don't work.

Getting from zero to one doesn't actually require four different skill sets full-time

Someone needs to build the product, someone needs to sell the product, and someone needs to raise money. That's one or two people, max three, not four. A startup doesn't need a head of engineering and a head of product and a head of design in addition to a CEO (yup, an actual startup a friend was thinking of joining...).

This isn't to say that you won't need skills the cofounders don't have - of course you will! Just that these needs are better satisfied by advisors, consultants, or very fractional professionals with well-structured statements of work.

Communication is way too complex with four cofounders

Alignment and speed matter way more than anything else in the early stages. Having four cofounders lengthens and complexifies every conversation.

Everyone is too diluted

The most expensive dilution you'll ever take on is from a cofounder. If you split equity evenly across four cofounders, you'll start with 25% each. Then, if you dilute by 20% in your seed round, you'll have 20%. After Series A, 16%. This is ignoring dilution from your equity pool for employees and any pre-seed raises you do.

At Series A, you're still not getting paid market rate, and you own a small chunk of the business. It's not super motivating, since even a good exit won't be great for you. You're likely to lose one or more cofounders to this feeling.

It's unlikely that your cofounders have the right skills to scale

Startups pivot often, and their needs change as the business develops. It's very unlikely that the skills you walk in with are exactly the senior roles that will be necessary to scale your startup. That's a lot more fixible with just one cofounder in addition to the CEO - they can take what they do well and you can hire for the rest. With three to find places for, it's nearly impossible. Some of you will end up fired. By your friend, the CEO. Awkward.

What is the right number of cofounders for a startup?

One. Or two. I know, everyone says you need a cofounder, but go look at the data. Sole founders are more likely to run businesses that survive. If you feel like you want to do it alone, honor that instinct. Two is also fine. Most of the concerns above don't really apply or are easy to manage with just one cofounder. Two is also great if this is your first startup and you're learning how to be an entrepreneur.

But if one is great, and two is fine, three and four is anything but heaven.

I'm not your lawyer, your therapist, your advisor, or your accountant. We're just internet friends, and these are just my experiences and personal opinions. Consult professionals for advice before you make any sudden moves in your startup.

You will see the occasional affiliate link. I do earn a commission if you buy the products I recommend. I appreciate you buying through the links if you're going to buy. This is a labor of love for my fellow cofounders, and I do love receiving a few coins to pay hosting costs if you like my work.