Vet Your Partner Like a VC: How to Build Trust Before You Commit

Mandy S
1 day ago
3 min read

Before you split equity or sign an operating agreement, learn how to validate a potential partner’s values, track record, and work habits—just like an investor would.

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Summary

Investors say “breakup risk” is top concern—so founders should treat partnerships like long-term investments. This article walks through how to vet a potential partner: exchanging written expectations, reviewing their track record, talking to past collaborators, and using trial-period working engagements.

The Partnership Test Most Founders Skip

In the rush of early startup energy, choosing a cofounder or business partner can feel like falling in love. But just like romantic relationships, business partnerships can unravel fast if they’re built on assumptions instead of shared understanding.

According to a First Round Capital report surveying hundreds of early-stage investors, “cofounder breakup” ranks among the top reasons startups fail. Yet few founders apply the same diligence to selecting a partner as they would expect from someone writing them a check.

Veteran investor Paul Graham famously advises, “Startups are like marriages... you don’t want to marry someone you just met at a bar.” So why treat your business partner any differently?

This article offers a structured way to vet a potential partner using tools adapted from investor playbooks: shared expectations, reference calls, and trial projects.

Start With a Written Expectations Letter

Before you split responsibilities—or equity—write a one-page expectations letter and exchange it. This isn’t a legal contract. It’s a candid outline of what you believe, how you work, and what you want.

Include:

Core values and principles
Long-term vision (and exit preferences)
Communication style and conflict resolution approach
Preferred decision-making process
Expected time and financial commitment

According to Harvard Business Review, misaligned expectations—not skills—cause most early-stage tension. A written letter makes the implicit explicit.

Want inspiration? Check out Y Combinator’s cofounder guide for practical tips.

Talk to Past Collaborators

Think of this step as cofounder reference calls. Investors don’t just read resumes—they speak to people who’ve worked with the founder under pressure. You should do the same.

Ask their past collaborators:

How do they show up under stress?
Are they reliable and communicative?
Do they take feedback?
What’s one challenge they handled well? Poorly?

If someone is unwilling to provide references or speaks negatively about all past teams, that’s your red flag.

According to a 2023 survey by Startup Genome, over 42% of failed startups cited cofounder misalignment as a critical issue. That’s higher than funding, product fit, or even competition.

Structure a Trial Engagement

Before filing an LLC or issuing equity, propose a 3–6 month trial partnership. This isn’t just for skills—it’s for fit.

Set clear project goals, deadlines, and decision-making processes. Hold weekly check-ins. Be transparent about the fact that this is a mutual evaluation phase.

During this period, pay attention to:

Accountability without micromanagement
Initiative under ambiguity
Problem-solving compatibility
How they handle disappointment or conflict

According to First Round’s guide, “shared struggle builds the most trust.” Trial work provides the right kind of struggle—without legal entanglements.

Redefining Trust as a Strategy, Not a Feeling

Trust isn’t a vibe—it’s a system. Investors look for signals: traction, credibility, a coherent story. You should do the same with your partner. Don't mistake charisma for character, or urgency for alignment.

Even solo founders can apply this approach to key hires or fractional executives. Structured trust-building lowers the emotional and financial cost of wrong decisions.

Final Thought from a VC Who’s Seen It All

“Treat a cofounder like a permanent board seat—not like a roommate you hope gets along with you,” says Sarah Tavel, general partner at Benchmark. “You can fix bad products. You can’t fix broken trust.”

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