<?xml version="1.0" encoding="utf-8" standalone="yes"?><rss version="2.0" xmlns:atom="http://www.w3.org/2005/Atom"><channel><title>Equity on Stack &amp; Scale Journal</title><link>https://stackandscalejournal.com/tags/equity/</link><description>Recent content in Equity on Stack &amp; Scale Journal</description><language>en-us</language><lastBuildDate>Fri, 06 Nov 2026 10:33:00 +0000</lastBuildDate><atom:link href="https://stackandscalejournal.com/tags/equity/index.xml" rel="self" type="application/rss+xml"/><item><title>How to Find a Technical Cofounder Without Giving Away the Company</title><link>https://stackandscalejournal.com/how-to-find-a-technical-cofounder/</link><pubDate>Fri, 06 Nov 2026 10:33:00 +0000</pubDate><guid>https://stackandscalejournal.com/how-to-find-a-technical-cofounder/</guid><description>&lt;p&gt;A technical cofounder is not a hire. The person builds the first product, makes the architecture decisions the company lives with for years, and owns a founder-sized share of the stock. The search should be run like a search for a business partner, because that is what it is.&lt;/p&gt;&#10;&lt;p&gt;The failure pattern is familiar. A non-technical founder with an idea and a slide deck offers 5% to an engineer, the engineer says no, and the founder concludes that engineers are hard to find. The offer was the problem. Engineers who could start a company on their own are being asked to take employee-level equity for founder-level risk.&lt;/p&gt;&#10;&lt;h2 id="start-with-what-the-company-needs-built"&gt;Start with what the company needs built&#10;&lt;/h2&gt;&lt;p&gt;Before looking for anyone, write one page that answers three questions:&lt;/p&gt;&#10;&lt;ol&gt;&#10;&lt;li&gt;&lt;strong&gt;What does version one have to do?&lt;/strong&gt; Not the roadmap. The smallest product a first customer would pay for or use weekly.&lt;/li&gt;&#10;&lt;li&gt;&lt;strong&gt;What kind of engineering is it?&lt;/strong&gt; A mobile consumer app, a data pipeline, a hardware prototype and a B2B web app need different people. &amp;ldquo;Technical&amp;rdquo; is not one skill.&lt;/li&gt;&#10;&lt;li&gt;&lt;strong&gt;What has the non-technical founder already done?&lt;/strong&gt; Customer interviews, a waitlist, letters of intent, a pilot with a named company. This is the evidence a strong engineer will ask for first.&lt;/li&gt;&#10;&lt;/ol&gt;&#10;&lt;p&gt;A founder who cannot fill in the third answer is not ready to recruit a technical partner. The better use of the next month is talking to customers.&lt;/p&gt;&#10;&lt;h2 id="where-technical-cofounders-actually-come-from"&gt;Where technical cofounders actually come from&#10;&lt;/h2&gt;&lt;p&gt;There is no single channel. The places below are listed roughly in order of how much the founder already knows about the person.&lt;/p&gt;&#10;&lt;table&gt;&#10;&#9;&lt;thead&gt;&#10;&#9;&#9;&#9;&lt;tr&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;th&gt;Channel&lt;/th&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;th&gt;What the founder learns before the first meeting&lt;/th&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;th&gt;Cost&lt;/th&gt;&#10;&#9;&#9;&#9;&lt;/tr&gt;&#10;&#9;&lt;/thead&gt;&#10;&#9;&lt;tbody&gt;&#10;&#9;&#9;&#9;&lt;tr&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;Former colleagues&lt;/td&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;How the person works under deadline&lt;/td&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;Time&lt;/td&gt;&#10;&#9;&#9;&#9;&lt;/tr&gt;&#10;&#9;&#9;&#9;&lt;tr&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;Friends of colleagues&lt;/td&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;A trusted second-hand reference&lt;/td&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;Time&lt;/td&gt;&#10;&#9;&#9;&#9;&lt;/tr&gt;&#10;&#9;&#9;&#9;&lt;tr&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;University networks and alumni groups&lt;/td&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;Shared background, sometimes shared coursework&lt;/td&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;Time, some events&lt;/td&gt;&#10;&#9;&#9;&#9;&lt;/tr&gt;&#10;&#9;&#9;&#9;&lt;tr&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;Open-source contributors to tools the company uses&lt;/td&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;Public code, communication style in issues&lt;/td&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;Time&lt;/td&gt;&#10;&#9;&#9;&#9;&lt;/tr&gt;&#10;&#9;&#9;&#9;&lt;tr&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;Hackathons and build weekends&lt;/td&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;How the person ships in 48 hours&lt;/td&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;Entry fees, travel&lt;/td&gt;&#10;&#9;&#9;&#9;&lt;/tr&gt;&#10;&#9;&#9;&#9;&lt;tr&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;Cofounder matching platforms&lt;/td&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;A self-written profile&lt;/td&gt;&#10;&#9;&#9;&#9;&#9;&#9;&lt;td&gt;Varies; YC&amp;rsquo;s is free&lt;/td&gt;&#10;&#9;&#9;&#9;&lt;/tr&gt;&#10;&#9;&lt;/tbody&gt;&#10;&lt;/table&gt;&#10;&lt;p&gt;On matching platforms, Y Combinator runs &lt;a class="link" href="https://www.ycombinator.com/cofounder-matching" target="_blank" rel="noopener"&#10; &gt;Co-Founder Matching&lt;/a&gt;, which its page describes as free, with no equity taken. YC says the platform has made over 100,000 matches and lists active profile counts by city. A profile gets a founder into conversations. It does not replace the trial described below.&lt;/p&gt;&#10;&lt;p&gt;Former colleagues sit at the top of the table for a reason. The question that matters most, how this person behaves when things go wrong, is one the founder can already answer.&lt;/p&gt;&#10;&lt;h2 id="the-first-three-conversations"&gt;The first three conversations&#10;&lt;/h2&gt;&lt;p&gt;Treat the early meetings as mutual diligence. The engineer is evaluating the founder at least as hard.&lt;/p&gt;&#10;&lt;p&gt;&lt;strong&gt;Conversation one: the problem.&lt;/strong&gt; The founder explains the customer problem and the evidence. The engineer&amp;rsquo;s questions show how they think. Someone who jumps straight to the tech stack before asking who the customer is may be a strong engineer and a weak cofounder.&lt;/p&gt;&#10;&lt;p&gt;&lt;strong&gt;Conversation two: the work.&lt;/strong&gt; Each person describes how they like to work: hours, location, how decisions get made, what happens when they disagree. Remote or in person, full time now or after a notice period, salary needs for the next 12 months.&lt;/p&gt;&#10;&lt;p&gt;&lt;strong&gt;Conversation three: the deal.&lt;/strong&gt; Equity split, vesting, titles and who sits on the board. YC partner Michael Seibel&amp;rsquo;s essay on &lt;a class="link" href="https://www.ycombinator.com/blog/splitting-equity-among-founders" target="_blank" rel="noopener"&#10; &gt;splitting equity among co-founders&lt;/a&gt; argues for equal splits because the work is ahead of the team. A founder who wants an unequal split should be able to explain why in a sentence an investor would accept.&lt;/p&gt;&#10;&lt;h2 id="run-a-paid-trial-project"&gt;Run a paid trial project&#10;&lt;/h2&gt;&lt;p&gt;A trial project is the closest thing to working together without being married. Four to six weeks is long enough to see how the person handles ambiguity, scope cuts and a missed deadline.&lt;/p&gt;&#10;&lt;p&gt;A simple trial scope, written as a short agreement:&lt;/p&gt;&#10;&lt;pre tabindex="0"&gt;&lt;code&gt;Trial project agreement (outline)&#10;&#10;Parties: [Founder A] and [Engineer B]&#10;Term: 6 weeks starting [date]&#10;Scope: Build [one workflow] end to end for [named pilot customer]&#10;Check-ins: Twice weekly, 30 minutes&#10;Compensation: [cash amount / none]; no equity promised during the trial&#10;IP: All work product assigned to [Founder A, or the company&#10; once formed]; Engineer B confirms no employer claims it&#10;Exit: Either party may end the trial with written notice&#10;After trial: If both continue, incorporate and sign founder documents&#10; within 30 days&#10;&lt;/code&gt;&lt;/pre&gt;&lt;p&gt;Two lines in that outline protect both people.&lt;/p&gt;&#10;&lt;p&gt;&lt;strong&gt;The IP line.&lt;/strong&gt; Code written during the trial has to belong to the company, or to the founder for transfer to the company once it exists. An engineer with a current employer should check that employment agreement first. Employment agreements can include invention-assignment clauses, and work done on an employer&amp;rsquo;s laptop or time can create a claim. A lawyer should look at the clause before any code gets written.&lt;/p&gt;&#10;&lt;p&gt;&lt;strong&gt;The equity line.&lt;/strong&gt; No equity is promised during the trial. Promising &amp;ldquo;10% if this works out&amp;rdquo; in a chat message creates an argument later about what was promised and when.&lt;/p&gt;&#10;&lt;h2 id="what-to-sign-once-both-say-yes"&gt;What to sign once both say yes&#10;&lt;/h2&gt;&lt;p&gt;Once the trial works and both founders commit, the paperwork follows the same order as any new company:&lt;/p&gt;&#10;&lt;ul&gt;&#10;&lt;li&gt;Incorporate, as a Delaware C corporation if the plan is to raise venture money.&lt;/li&gt;&#10;&lt;li&gt;Issue founder stock to each founder under a stock purchase agreement with vesting.&lt;/li&gt;&#10;&lt;li&gt;Have each founder sign an IP assignment covering prior work on the product, including the trial code.&lt;/li&gt;&#10;&lt;li&gt;File each founder&amp;rsquo;s 83(b) election within 30 days of the stock purchase. The IRS instructions for &lt;a class="link" href="https://www.irs.gov/pub/irs-pdf/f15620.pdf" target="_blank" rel="noopener"&#10; &gt;Form 15620&lt;/a&gt; set out the 30-day rule.&lt;/li&gt;&#10;&lt;/ul&gt;&#10;&lt;p&gt;This is general information, not legal or tax advice.&lt;/p&gt;&#10;&lt;h2 id="when-the-search-stalls"&gt;When the search stalls&#10;&lt;/h2&gt;&lt;p&gt;A three-month search with no candidate is a signal, not a failure. Three causes come up again and again:&lt;/p&gt;&#10;&lt;ul&gt;&#10;&lt;li&gt;&lt;strong&gt;The evidence is thin.&lt;/strong&gt; Engineers are pitched constantly. A founder with paying pilots gets a different response than one with an idea.&lt;/li&gt;&#10;&lt;li&gt;&lt;strong&gt;The offer is an employee offer.&lt;/strong&gt; Single-digit equity with a title of &amp;ldquo;CTO&amp;rdquo; reads as a hire.&lt;/li&gt;&#10;&lt;li&gt;&lt;strong&gt;The search is too narrow.&lt;/strong&gt; Only looking for a senior engineer from a famous company, when the product needs someone who ships quickly.&lt;/li&gt;&#10;&lt;/ul&gt;&#10;&lt;p&gt;There are fallbacks. A founder can hire a contractor to build a prototype under a work-for-hire agreement with IP assignment, then use the prototype and customer results to recruit a cofounder. That costs cash and gives up nothing on the cap table, but it delays the moment when the company has a technical owner, and investors will ask who that owner is.&lt;/p&gt;&#10;&lt;h2 id="red-flags-in-a-technical-cofounder"&gt;Red flags in a technical cofounder&#10;&lt;/h2&gt;&lt;p&gt;None of these is disqualifying alone. Two or more together should end the conversation.&lt;/p&gt;&#10;&lt;ul&gt;&#10;&lt;li&gt;Unwilling to sign an IP assignment or talk about vesting.&lt;/li&gt;&#10;&lt;li&gt;Wants a large equity grant up front with no vesting.&lt;/li&gt;&#10;&lt;li&gt;Cannot name a project they finished.&lt;/li&gt;&#10;&lt;li&gt;Will only work nights and weekends with no plan to go full time.&lt;/li&gt;&#10;&lt;li&gt;Dismisses the customer work as &amp;ldquo;sales stuff.&amp;rdquo;&lt;/li&gt;&#10;&lt;/ul&gt;&#10;&lt;p&gt;The same list applies in reverse. A good engineer will be checking whether the non-technical founder brings something beyond the idea, and the honest answer has to be customers, distribution or money.&lt;/p&gt;&#10;</description></item></channel></rss>