Colin Barry

Smartix (FD, Monday, Week 3)

founders-dilemmasyear-two

Homophily ("birds of a feather flock together"): how an e-ticketing startup launches with 75% HBS MBAs as founders, none of whom have ticketing or fundraising or software development experience. People select team members who are similar to them. Beware.

Early equity split: attract better co-founders.
Late equity split: more information about co-founders' commitment level and how much they will contribute to the enterprise's success.

"Shooting for the stars" (pitching the best VCs and the biggest-name customers) can help attract a great team, but adds pressure to deliver fast. Smartix fell apart because they could not immediately hit home runs.