In the fluctuating startup ecosystem where uncertainty looms, finding a suitable cofounder is crucial. A cofounder can either propel your company forward or steer it into troubled waters. Before committing to a partnership, founders typically engage in a trial period to assess if the potential cofounder aligns with the company’s values, culture, and pace.

What is a Trial Period?

A trial period is an agreed-upon duration during which a potential cofounder works under specific conditions. This could involve working on a side project for the startup or managing a part of the company alongside the founder. The goal is to evaluate whether the partnership should continue.

How Does a Trial Period Help?

Trial periods are invaluable for quickly determining if a cofounder is a good fit. They provide insight into the working dynamics between founders and allow for an evaluation of the potential cofounder’s skills, work ethic, and compatibility with the startup’s mission. This mutual understanding can save time and resources in the long run.

Goals of a Trial Period

The primary goals of a trial period include:

Experiencing Collaboration

• Understand what it would be like to work together. This involves testing day-to-day interactions, problem-solving approaches, and teamwork dynamics.

Assessing Enjoyment

• Determine if collaborating is enjoyable and productive. Evaluate if both parties find the partnership fulfilling and if they can maintain a positive and efficient working relationship.

Evaluating Work Ethic, Culture, and Values

• Ensure alignment in work ethic, culture, and values. Assess if the cofounder shares similar principles and can seamlessly integrate into the startup’s existing culture.

Making Informed Decisions

• Decide if the partnership should continue, end, or require more time. Based on the trial period's outcomes, make a well-informed decision about the future of the collaboration.
• A trial period typically lasts between 1 to 6 months. Anything shorter than a month may not provide enough time to fully assess the partnership. Ideally, it involves at least 120 hours of working together.

Structuring the Trial Period

A structured approach is essential for evaluating a potential cofounder effectively. Here’s what to include and test during the trial period:

About The Project

• Provide a comprehensive overview of the project. Specify the number of weeks and the minimum time commitment required.
• Indicate preferred working hours and times for check-ins and progress updates.
• Outline the project goals, deliverables, KPIs, and how performance will be measured.

Communication

• Establish multiple channels for effective communication. Use platforms like Google Meet, Zoom, or Discord for real-time interactions and co-working sessions.
• Utilize Google Drive or Notion for maintaining a shared knowledge base and tracking project progress.
• Use Slack with clear responsive times and do-not-disturb hours for flexible yet timely communication.

Work Streams

• Divide the work into streams such as research, design, building, and growth.
• Assess the cofounder’s ability to conduct thorough research, their creativity and alignment with the startup’s vision, their technical skills and problem-solving capabilities, and their effectiveness in driving growth and implementing strategies.

Ownership & Compensation

• Clearly define the ownership rights of any assets produced during the trial period.
• Document any compensation, equity splits, or other terms to prevent misunderstandings.

By structuring the trial period to include these elements, you can effectively assess the potential cofounder’s skills, work ethic, and compatibility with your startup’s mission and culture.

Conclusion

A well-structured trial period document helps ensure transparency and alignment. Be clear on non-negotiable aspects and open to communication for resolving any issues. Good luck with your cofounder trial period. If you’re still searching for the ideal candidate, CoffeeSpace offers a Tinder/Hinge-like platform for finding cofounders. Explore more on our app or try our playground for a hands-on experience.

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Hey everyone, it's Hazim here from CoffeeSpace!

It’s hard to believe we’re already in the second half of the year! The first half has been a true roller coaster for us, and we're glad to have you with us on this crazy ride!

It has been a pretty eventful month for us and I'm excited to unpack how these weeks unfolded and share what's coming ahead.

Growth & Traction

🚀   95,000 swipes, 22,500 right swipes & 3,750 matches (double right swipes) to date

• Seems like you folks have been pretty busy swiping, and we're just a few days away from passing the 100k swipes mark on CoffeeSpace!
• Based on current data, on average every 12 swipes -> 3 right swipes -> 1 match‍
• We've also passed 3,500 signups on CoffeeSpace two days ago!

🎉   Our Community Round has been oversubscribed by 40% & we are upsizing

• To everyone who's joined our community round, thank you ❤️ We're thrilled to share that we've exceeded our initial target of $100k!
• Given the continued interest we're seeing, we'll be upsizing the round to $250k – if you're interested to learn more feel free to check out our one-pager or you can also directly schedule a call with me.

🏆   Top 100 on the App Store for Social Networking

• We broke into the Top 100 (Mac-compatible) social networking apps on the App Store a couple of weeks ago – this of course isn't quite the same as breaking into the Top 100 on mobile, but we'll take all the small wins we can get :)

Product Updates (Coming Soon)

ℹ️   LinkedIn info + profile picture Integration on CoffeeSpace

• We conducted an NPS survey recently, and the top request was to have a more detailed profile for users.
• We're currently integrating with LinkedIn and it should be live in a few weeks. This will include the profile pic, one-liner, education, and experience sections.

✉️   CoffeeSpace's referral feature

• We'll be releasing our referral reward feature this month!
• Each time a friend signs up and gets approved, you'll both get a week of complimentary Business Class Membership worth $24.99.
• We won't be capping the rewards (at least for the first month of launch as an experiment) so refer as many folks as you want :)

🛝  Website Playground

Many of you mentioned that it would've been nice to have a feel of how the app works on the website before signing up, so we're building what we call The Playground where people can see synthetic recommendations (it's our Buildspace S5 'toy')

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📣   Shoutouts

Partnerships are one of the main ways we’re growing CoffeeSpace, and we’ve just added 3 amazing new partners recently!

• MatchPlay: Our first new partner helps create personalized roadmaps for founders to successfully build their companies while matching them directly with what they need for each step, whether they are investors, mentors, accelerators, or more. The best part? You can start using these resources at no cost (yes, you read that right)
• Peer2Peer: The first social club for 7K+ senior engineers from the top 50 CS schools, blending tier 1 startup and FAANG experience. Peer2Peer highlights members from within the community to help facilitate meaningful networking
• Daytwo.io: A platform that helps founders launch their app on Day 2, rather than months. It provides the boilerplate code needed to go live faster, enabling you to start iterating your product earlier

Our partner Antler will soon be opening their founder residency applications for the Fall 2024 cohort – as before CoffeeSpace members will get an expedited review through our referrals. More on this in the next update!

That's all from us this time – to those in the US, we wish you a happy 4th of July, and to everyone else in the community, have a great week! As always, feel free to reach out with any questions and feedback :)

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Cheers,
Hazim & Carin

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A startup is nothing without its funds.

As an entrepreneur embarking on a startup journey, one of the most critical decisions you'll face is the choice of funding model. The success of your venture often hinges on your ability to secure the right financing strategy, and especially with your product or service in development, securing adequate funds could alleviate your burden of worrying about operations, and put more focus on developing and pushing out your MVP or growing your startup. In this article, we'll explore the two primary funding options that are available to most startups: Venture Capital (VC) and Bootstrapping, highlighting the key differences and considerations to help you make a better and more informed decision.

What is Venture Capital (VC)?

Venture Capital or also known as its abbreviation VC, is a form of private equity investment provided by specialized firms or funds to emerging companies with high growth potential. These VC firms invest in startups in exchange for an equity stake or ownership in the company. This type of funding allows startups to access significant resources to accelerate their startup’s growth.

VC funding is typically categorized into different stages, such as pre-seed, seed, and early-stage, each with its own set of requirements and investment criteria that varies across different VC firms. Securing VC investment is a highly competitive process, as startups vie for the attention and backing of these firms.

The advantages of VC funding include:

• Access to substantial capital for rapid expansion and scaling
• Guidance and expertise from experienced investors and mentors
• Connections to a broader network of industry players and potential partners
• Increased credibility and visibility in the market

However, VC funding also comes with its own set of challenges:

• High risk of failure, as the startup space is inherently competitive and volatile
• Founders may need to cede some control over decision-making to the VC firm
• Pressure to achieve high growth and returns within a specific timeframe

As VC is an external investment, their firms raise capital from other institutions to then invest in high-growth startups. It is a high risk high return investment, but it is not without its offerings of more resources and professional help or connections to maximize the success rate of their investments. 

What is Bootstrapping?

Bootstrapping, on the other hand, refers to the practice of self-funding and relying on the company's operating revenues to finance and run the business. The term “bootstrap” in businesses originated from the saying of “pulling yourself up by your bootstraps” which means that you could do anything by yourself without any support, emphasizing self-reliance and minimal external funding.

The core principle of bootstrapping is to avoid giving up equity or ownership in exchange for larger investments. This allows founders to maintain full control over the future direction and development of their company.

The pros of bootstrapping include:

• Retaining complete control over the company's decision-making
• Building a customer-centric growth model focused on profitability
• Gaining valuable hands-on experience in managing all aspects of the business

Bootstrapping, however, also comes with its own set of cons:

• Limited access to significant capital for rapid expansion
• Founders may need to wear multiple hats and be a "jack of all trades" and adapt quickly to changes 
• Slower growth trajectory compared to VC-backed startups
• Potentially more financial discipline and meticulous planning required

As bootstrapped businesses need to be more profit-oriented, self-funded startups need to be prioritized to be profitable from the outset to ensure that they are able to keep operations running and have enough funds to reinvest in the business later on. Gradually, this makes the startup a more sustainable business model.

How to Choose the Right Funding Approach?

The best funding approach for your startup depends on your specific circumstances, goals, and the nature of your business. Bootstrapping may be an ideal choice for businesses that can generate revenue quickly and do not require substantial upfront capital. Conversely, VC funding may be a better fit for startups with ambitious growth plans and larger market opportunities that require significant resources to scale rapidly.

Ultimately, the decision between VC and bootstrapping should be based on a careful analysis of your startup's needs, the trade-offs involved, and your personal preferences as a founder. By understanding the nuances of each funding model, you can make an informed choice that aligns with your startup's long-term vision and increases your chances of success.

You have a startup idea. You built your solution. Now what? 

You may have a revolutionary and disruptive product, but no one would buy it if people do not know about its existence. In fact, 14% of startups fail because of poor marketing efforts. Hence, getting your product out there to reach its target market is one of the most important yet trickiest parts of growing your user base. 

Launching on Product Hunt may just help you with getting your first users and your name out there to more people. It is a low-hanging fruit with a high yield, and winning on Product Hunt boosts your company’s visibility, brand awareness, and social proof that will unlock a short-term growth opportunity that leads to more doors in the market.

Some successful startups like Notion, Zoom, and Figma launched their product on the site and they have since then grown exponentially since their launch day. 

CoffeeSpace has also launched on Product Hunt recently and out of 100+ companies launching on the same day, we landed on the top 5 spot for Product of The Day and 11th for Product of the Week! Our user base also grew by 15% from the Product Hunt launch itself, which is a testament to the platform's effectiveness in driving visibility and engagement for new products.

What is Product Hunt?

Product Hunt is a social media and product launchpad combined, this platform is for discovering and sharing new tech products and building a tight-knitted community of early adopters, especially helpful for founders wanting to get the word out about their startups. 

Consider launching on Product Hunt if you are seeking to:

• Get poignant feedback from early users to improve on your product(s).
• Reach a diverse, global community of tech enthusiasts and industry professionals.
• Grow your user base and look for potential investors.

Not only is the launch day important but Product Hunt is another space for others to discover your product page and convert! Now, we are going to share our experience and some tips on launching and to land on the top Product of The Day spots!

How to Launch on Product Hunt?

Here’s a checklist to guide you through the submission process for launching your product on Product Hunt:

About Your Product

• Makers: List the creators of the product.
• Name of the Product: Clearly state the name of your product.
• Thumbnail: Prepare a thumbnail image.
• Tagline Description: Write a concise tagline (up to 260 characters).
• URL: Provide the product’s URL.
• Social Media Handles: Include Twitter and other relevant handles.
• App Store / Play Store Links: Add links if your product is available on these platforms.
• Website: Provide your product’s official website.
• Topics & Categories: Select relevant topics and categories for your product.

Gallery

• Images: Upload a minimum of 2 images (1270x760 pixels). Use app screenshots.
• Video: Showcase your YouTube video through a link here.

Pricing & Promo

• First Comment by the Maker: Prepare a welcoming and informative first comment to engage users.

This checklist is also available on the Product Hunt Launch Guideline Page to help you prepare for your launch.

How to win Product of the Day?

Now you are all set on launching your product. How do you win?

Winning Product of the Day essentially gives you more visibility and higher traffic to your page, which essentially means the probability of user conversion in the very least, is higher.

Products refresh every 24 hours according to Pacific Standard Time (PT) and the rules are simple: get as many upvotes as you can during the day of your launch, and products with the most votes land on the top spots. Quality and organic upvotes are crucial, as Product Hunt detects bots and spam - those votes get removed eventually. On top of upvotes, authentic user reviews are also another way to gain traction to your products.

Strategies to Maximize Your Win

Tip #1: It’s launch time!

As Product Hunt resets their daily list, it is strongly recommended that you launch at 12:01am PT to maximize the time you get the full 24-hour to get upvotes. 

Tip #2: Engage, engage & engage!

This is the critical 24-hour period, and you want to garner all the upvotes and attention, and be engaged in the comments section and interact with users who show interest or have commented. This helps you to get valuable feedback for your product, but also to foster a sense of community, increasing user engagement and loyalty! 

Tip #3: Blast the news out everywhere!

Social media platforms are your best friends to get upvotes. Post everywhere that you can - LinkedIn, Twitter (or X), your own newsletter etc. to make sure you are not missing out on any spaces that should know about your launch! Just a gentle nudge to your followers for their support through direct messages can also go a long way! 

Strategy for new makers!

For CoffeeSpace, we have launched our app several weeks prior to Product Hunt, hence we are already launching with a pool of early users who have tested and tried the app. For founders who are launching their products on Product Hunt as their official launch, we definitely have some alternative tips that may work in your favor better.

Tip #1: Planning strategically and scheduling your launch instead of launching immediately

On Product Hunt, there is an option to “launch now” or “launch later” and a scheduled launch can go up to 30 days in advance. Upon scheduling your launch, your product will be featured on the “Coming Soon” page, which essentially shows all the upcoming launches. 

This is helpful as you can start building your presence and community on Product Hunt before launching! This gives you ample time for people to check out and discover your product beforehand, and get notified and excited when you launch!

Tip #2: Engage in other launches beforehand

Remember, this is a social space to uplift makers! Show your love to other launches too - comment, upvote, share about them! This is a tight-knit community and being supportive helps you to network, connect, and meet other amazing makers and users! 

Tip #3: Update your profile pages

Launching as a maker is no easy job, but we highly recommend launching yourself instead of finding a hunter (someone to do it for you) on Product Hunt. This helps with being connected closer with your users and garnering the feeling of inclusivity and exclusivity with the maker. As such, it is important to also keep your page updated so it looks professional. Be it your own Product Hunt page or your maker profile, keep them updated with relevant information - utilize the bio section to also further demonstrate your experiences, skills etc.

Launching on Product Hunt is a scary but thrilling milestone, and the adrenaline rush in that 24 hours is just intense, but rewarding! All in all, the purpose of launching your product is to reach new targeted audiences and get feedback for your later development of your product, winning Product of the Day of course, is the icing on the cake!

Over 50% of startups consist of more than one founder. If you think about it, it makes sense to have more than one founder as the operations and development of a startup require a lot of effort and dedication, there are only a limited and finite amount of things you can get done in 24 hours. Founder burnout, especially running a company alone, makes the challenge exponentially more difficult to avoid in an already cut-throat startup space.

So, solo founders who are considering a cofounder, knowing the right timing or at which stage of your startup that you want to have an additional partner is crucial, as it easily helps to maximize your time spent on the things you want to focus while leaving other tasks to the other to handle. There are several phases in a startup that one normally goes through,  but no matter which stage your company is in, here are some questions to evaluate if you need a co-founder to join your venture!

You do not necessarily need a cofounder at a specific, predefined stage of your startup but the need for one can arise throughout the process, depending on your situation and circumstances. Here is a breakdown by stage:

Ideation & Validation Phase

During this initial brainstorming and market research phase, a cofounder can be valuable for several reasons. Having someone to challenge your assumptions is crucial, especially if you have someone with market research expertise as it can be a complex process, an extra pair of eyes may help to spot some gaps, loopholes, and deeper insights into your target market that your idea may offer. Even in this stage of a startup, having someone with complementary skills is hugely beneficial - perhaps you are a visionary with a revolutionary idea, but lack the market research expertise, or vice versa. Having a cofounder to offset some of your shortcomings may be strategic right from the start as you will have clear visions on your roles later on. By leveraging on combined skills and perspectives that your cofounders share, you can work more effectively and increase your chances of developing a well-rounded business concept significantly.

Development & Design

Or perhaps you are in the phase of building your MVP or developing your solution. The workload of building the MVP may be overwhelming for one person alone on top of the initial marketing efforts to dominate the consumer gap. Efficiency and speed are both key elements to develop and design your solution, and this meticulous process may take a long time, even longer with only one person working on it. A cofounder can bring increased productivity or build a functional prototype, if both are technical, or if not, a non-technical cofounder is also crucial at this phase to seek for early customers and users, gain early traction, and build brand awareness while the solution is in the works. Of course, there is always the option to hire freelance developers or design teams, depending on the circumstances and the vision of the founder, then a cofounder might not be essential at this stage.

Growth & Scaling

This phase is arguably the trickiest part of expanding a startup and assimilating your product solution to the market. At this point, complementary expertise can be crucial for scaling operations efficiently, with the technical cofounder working on new iterations, while not hindering the marketing co-founder to increase the user base and pull in investors for the company. 

All in all, there is no pressure to have a cofounder at any stage of a startup as you can always bring on a cofounder later. Don't feel pressured to find one at the very beginning if you don't need one, and instead identify the aspects which you may need extra support and help with and focus on finding someone who complements your skillset and shares your vision. When all’s said and done, it's sometimes better to go solo than be in a bad cofounder partnership.

CoffeeSpace is an app made for founders to meet their ideal cofounder, built to enhance your cofounder search experience, it is a platform for all founders, tinkerers, and aspiring entrepreneurs to explore business ideas and go build. Sign up now to meet others exploring ideas!

Your co-founder should be someone who can see the same vision and walk the tough path with you, especially when things get tough. This partnership is the bedrock of your startup - Brian Chesky

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This means your startup is heading on a positive trajectory and needs an extra pair of eyes and hands! If you are in that position right now and reading this, first of all - congratulations! It is such exciting news and we wish you the best with your venture (and potentially an additional co-founder)!

However, there are many common pitfalls and blind spots that entrepreneurs fall prey to when it comes to this important decision. A co-founder can either be the wind beneath your wings, propelling your venture to success, or the anchor dragging you down. (Obviously, we would want to avoid the latter!)

Here are some common mistakes to watch out for and tips on how to avoid them:

Rushing into a Partnership

One of the most common mistakes entrepreneurs make is rushing into a partnership without thoroughly vetting their potential co-founder. While we know it is exciting to kickstart your venture with your new co-founder, it's essential to take the time to get to know the candidate beyond what they put on paper. This synergy and relationship building with your future co-founder takes time, so don’t rush the process! A tip is to have them work together with you on smaller scale projects before deciding to commit to a long-term partnership together. This way, you are able to learn more about their hard and soft skills when it comes to handling a project, which is crucial for your assessment of their suitability in the bigger picture!

Focus on Technical Skills and Resume Only

Another common pitfall founders often overlook is being in the tunneled focus on finding someone with the right hard skills, portfolio, and resume only. While technical skills play an important role in accelerating your startup, that shouldn't be the only criteria when selecting a potential co-founder. Look beyond the resume and also do not forget to consider factors such as problem-solving skills, creativity, and adaptability! 

Beyond skills and experience, it's crucial to assess the personality and character of your potential co-founder. Are your values and visions for the company aligned? What about your work ethics and communication styles? Finding the right cofounder is like finding the right partner, you have to factor in that this may be the person you are working with for the next years of building your startup!

Compatibility and Complementary Skills

Now that you find someone with an amazing portfolio and resume, another important pitfall to avoid is to never forget to evaluate their compatibility and focus on complementary skills that fills your gap. Ensure that you and your co-founder complement each other's skills and expertise. It may be essential to have overlapping abilities, but having diverse skill sets is definitely an added advantage to enhance your startup's capabilities and resilience.

Unequal Commitment 

Being a co-founder means responsibility and you want it to be adequately distributed among your co-founder and yourself. Misaligned commitment levels can quickly escalate to resentment and internal conflict that hinders the progress of your timeline. It is crucial to make sure that both you and your co-founder are equally committed to the startup and willing to invest the necessary time, energy, and resources.

If there is an unequal distribution in your team, keep in mind any imbalances in the time and effort spent on the startup. If one co-founder is consistently carrying a heavier workload or making more significant sacrifices, it can strain the relationship and lead to frustration and arguments.

Unclear Roles and Responsibilities

In addition to the commitment and effort, unclear roles and responsibilities from the get-go may lead to dispute and discord among your team members. Ambiguity in this area can lead to confusion, duplication of efforts, and inefficiencies. Remember to clearly define each co-founder's roles and responsibilities from the outset to ensure a smooth and untroubled transition from being a solo founder to having another co-founder in your team!

Not Having a Vesting Schedule

In short, good contract terms lead to good partnerships. A vesting schedule sets the seal that each co-founder earns their equity stake over time based on their continued contribution to the startup. Failing to implement a vesting schedule from the start can leave the door open for disputes or disagreements down the line when the startup grows and becomes more successful.

In conclusion, choosing the right co-founder is no easy task. It can take up from days to years to find the right person who shares the same values and vision for the future of your company! Remember, take your time and fun with it - enjoy the process and trust your instincts!

If you are ready to go on your co-founder search journey, CoffeeSpace is the perfect accelerated “dating” app for you to find quality co-founders! Download our app now, or test out how the app works in our playground now!

How do you know you are compatible with a potential cofounder?

You are meeting your dream potential cofounder after reading through their resumes and portfolios. Now what? Kickstart a meaningful conversation to get to know them and your company better! Asking the right questions helps you to identify a potential co-founder or to sift out red flags that you come across.

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Here are some important questions to ask your potential co-founder, and a helpful tip is to make sure that you answer them yourself first - it comes in handy for when you match your expectations with your potential cofounder’s!

On Vision and Motivation

• Why are you interested in joining this startup?
• What are your short-term and long-term goals for the startup?
• What motivates you to pursue this startup in this field / area?

On Skills and Experience

• Do you have any prior experiences in similar startups or companies?
• What have you learnt from prior startup (or similar) experiences, if any?
• What are your expertise, strengths, and weaknesses?
• What are the areas / roles you would like to take up in the startup and your contribution?

On Commitment

• How committed are you to seeing this startup succeed, and what sacrifices are you willing to make?
• What level of time and effort can you realistically dedicate to the startup, considering your other commitments?
• How do you plan to balance your commitments to ensure the success of the startup?
• What do you anticipate the workload to be like in the initial stages of the startup, and how do you plan to manage it?
• Are you comfortable with potentially long hours and high-pressure situations as we build the company?

On Ownerships

• What are your expectations regarding ownership and equity distribution within the startup?
• How do you envision making decisions about ownership and equity as the company grows?

On Finances

• What financial resources or connections can you bring to the startup?
• How do you feel about taking financial risks for the success of the venture?

All in all, these are just some helpful prompts to kickstart your chat with your potential cofounder! Take the conversation one step further when you discuss your expectations. Be open-minded when going into conversations like this, it will not only help you to better understand your needs and standards for a cofounder, but also to comprehensively get to know your future business partner!

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Have a startup or business idea? Find someone to explore it with. If you are looking for a co-founder, or you are just exploring the startup ecosystem, CoffeeSpace is the ideal platform for you.

Sign up now to start exploring and building, or try out our playground to get a feel on how things work!

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