Samuel lost his $500 savings to crypto scams, and he concluded that cryptocurrency and its industry are nothing but a scam. He even convinced a few of his friends never to invest in anything crypto.
Many people are like Samuel, and maybe some are still skeptical about the cryptocurrency market as a result of what they have witnessed or been told just like Samuel’s friends.
But is the cryptocurrency market really a scam?
The answer is simply NO.
The cryptocurrency market is just like a normal marketplace you are familiar with, we can’t conclude that because there are “few” people who sell fake clothes or shoes and say all the market-sellers are scammers.
The truth is, there is no business or any organization in life that some set of people will not take advantage of. mention it, religion, politics, or academics?
No matter what, some people will still scam others.
As the popularity of digital currencies tends to increase and evolve all over the world, more and more people join the cryptocurrency trend; it becomes easy to scam cryptocurrency users as the number increases.
CNBC reported that the money lost due to crypto scams is up to $14bn, while it is $1bn between January and March 2021 only.
Who falls for crypto scams?
Anybody can fall for a crypto scam. But those who are more vulnerable are the poor, desperate, ignorant, and those who are looking for quick ways to make money.
Although it is never possible to be able 100% safe from crypto scams, there are various precautions that you can take to reduce and minimize the risk of getting scammed.
But note something;
Definition of crypto scams or scams generally is not just about losing money. It also involves losing your privacy to fake people/companies who will in the end sell your information for money.
Some crypto scammers are not interested in your ‘short-time’ money, they need a way to invade your life and make you homeless.
With these tips highlighted here, you will be able to protect yourself and lower the risk of getting scammed significantly.
How to Protect Yourself from Crypto Scams
If you don’t want trouble, trouble itself will try to pull your feet into it.
One key principle that you must uphold when using the internet is to be able to protect yourself, your details, your privacy, and your information.
The reason is that there can be a breach of information and your confidential details would be exposed to the public, this is why you should protect yourself in order to be secured on the internet.
A key factor that people do not know is that all crypto scams look different but they are actually similar in essence. Newbie cryptocurrency users always fall gullible to scams and this has retraced their steps towards acquiring crypto coins.
With the use of common sense, it is possible to avoid most of these crypto scams.
At times, you can get skeptical and critical when analyzing cryptocurrency offers for investments, also, you should prepare your mind because certain scams will surely appear as you show more interest in cryptocurrencies.
One simple rule which you should have on your mind is; “If the offer sounds too good to be true, it probably is a scam.”
But that’s not just enough right?
You need to know there is fire on the mountain even without you seeing the fire, maybe you should know by just seeing the smoke.
Without mincing words, here are some of the most common crypto scams which every cryptocurrency enthusiast should be aware of, and how to protect yourself.
What are some of the crypto scams?
#1: Cloud Mining Services
I personally believe ‘mere’ cryptocurrency mining is a scam. This kind of offer is common in countries like Nigeria where the youths are adopting cryptocurrency massively.
As a result of this, crypto scammers try to scam them by saying they can mine bitcoin or any cryptocurrency on their phone.
The gospel truth;
You can’t mine bitcoin or cryptocurrency on your phone, it’s not possible! Check how crypto mining works here.
Get that straight, anybody that tells you that you can mine crypto on your phone but you have to pay a certain amount of money, run, it is one of these crypto scam attempts.
But there is a caveat;
If you partner with a trusted crypto firm, you can mine altcoins (cryptocurrencies other than Bitcoin).
You simply buy or rent mining hardware located in a miner’s facility to mine for coins in your house or anywhere you like.
The hardware consumes electricity a lot, so you should prepare for this if at all you are interested in cloud mining.
Cloud mining scam websites are always on the lookout to defraud crypto mining community members for which the vulnerable amateurs have no choice but to fall for the trap.
If you are in the camp of people who prefer cloud mining to hardware mining, you’ll need to be extra vigilant and careful because this is the easiest way of getting scammed.
There are several tricks that cybercriminals and scammers would do to get potential victims and cover their tracks.
- One of such tricks is by keeping their domain and WHOis information hidden.
- Another trick they use to get victims is by registering their crypto cloud mining company in reputable places like New York, Georgia, Washington, and London but there are all foreign residents who wouldn’t register it in their country to avoid being caught.
So avoid anything mining especially if they mention mining with your smartphone or laptop.
#2: Multi-Level Marketing (MLM) Schemes
Imagine someone telling you that you have to pay money to join a marketplace, after paying, you will have to invite people to join too before you make money on your investment.
Does that make sense?
Well, maybe it does. But why can’t you let me stick to one, let me pay money and make a profit, or, call people for you and make money on each people I referred?
Bitcoin and MLM (multi-level marketing) schemes also make use of the aspect of network marketing (which is popularly referred to as referring or direct selling), through this, they make bitcoin and other cryptocurrencies sound like a scam.
Multi Level marketing schemes make promises and exaggerated claims that make the user feel fulfilled and that he can make his money quickly and make profits from his invested capital.
Just as mentioned, these schemes can easily be identified very quickly because they all have something in common.
They are not actually selling any service or product, instead, they invite you to join a complex group with other users; you’ll be required to make some payments and fees; after that, you will be promised to move from a particular level to another.
After the end of everything, you will get scammed in the pyramid scheme.
An example of this crypto MLM scam is Forsage, one of the top crypto scams in the world, It came like a storm, people really invested their money and settled down to cry bitterly. the SEC sue Forsage for $300m but would that pay all the victims?
To make money in the cryptocurrency market, you don’t need to invite anybody, you just have to learn how the market work and invest!
If you are a beginner and you will like to learn everything you need to know about cryptocurrency including trading and buying real coins, I recommend you buy the Trade & Make Money course by Chris Ani.
#3: Bitcoin Investment Packages (BIPs)
Bitcoin investment packages (BIPs) are another type of scam in the crypto industry. The Bitcoin investment schemes are not really different from the cloud mining scams.
In the real sense, they promise to return on investments and they would pay out in small or in daily returns until all payment activities would stop and they abscond with the investment funds of users.
But not that Bitcoin investment scams are different from Ponzi schemes.
Usually, these “investments” seem extremely profitable and lucrative at the first instance because the very first set of people register to get the benefits as they get paid.
Then they start testifying and convincing people of their gains, and more users will join and invest to get profits from the scheme, but these users begin to face problems when they tend to withdraw their earnings, in essence, the money invested disappears.
Poor and ignorant people are in trouble!
#4: Identifying Fake ICOs
Identifying fake ICOs gets harder because the industry is getting more sophisticated; which makes it difficult to identify the genuine ones from the scammers.
An Initial Coin Offering (ICO) which looks to sell coins must have a piece of detailed information that is clear and comprehensible.
People behind this scheme utilize what is known as crypto giveaway scams, they simply send a free and useless coin to you, once you accept the coin to your wallet, they will use it to steal all the crypto assets you have in that wallet.
It is called Rug-pulling… They don’t need access to your phone or password, just accept the fake coin and that’s all.
An established and reputable company will not be able to scam you if it is bound by the government regulations of a country and if it compromises such license, it would be apprehended and unlikely to be able to run far.
In addition to this, a good ICO must have a good presence on social media, through this method you can search for genuine and honest reviews.
But again, this is not 100% way to protect yourself. A regulated company can still scam you. A 100% way is to avoid anything called ICO if you don’t know about the technology or motivation behind the coin.
#5: Pump-and-Dump Schemes
Pump and Dump schemes are another type of scam that you must avoid. The pump and Dump scheme is all about inflating the prices of less popular crypto coins by spreading false information about that coin in a bid to get interested and enthusiasm from crypto users to actually invest their capital in it.
A good example is Zugacoin.
They pumped Zugacoin as high as $200k+ two years ago, it got to $20k+ last year, but it is now $1+
The culprits (scammers) in these schemes are people who are known as the “pumpers.”
They are the market players that “pump” a token (most often, it is an unpopular cryptocurrency that is not popular and seldom desired).
These players make purchases of significant amounts of these coins and make attempts to ‘pump’ them and hype them across numerous channels such as the social media platforms like Facebook, YouTube & Instagram to get users who would fall for it.
Once the token’s worth has artificially risen, they would dump this token in the hands of unsuspecting investors and depart, hence, the tokens become useless.
To avoid this type of scam, you can simply check the market caps of coins if they are low, but if the coin has a high price and sudden random surge, you should know that it was artificially done by fraudsters to get victims.
#6: Email Scam
In one way or another, someone, a scammer gets ahold of your email address and the next thing is to start spamming you with different and enticing emails just to invest on a platform or buy a token.
Avoid replying to any email like that, don’t even think of trying it out, it’s a scam!
No legit cryptocurrency exchange website owner or marketer will send you an email without legally collecting your email address with your consent.
The offer may look good, but report the email address of the sender as spam as soon as possible. They don’t have anything to lose, they are messaging hundreds of people at the same time, they believe if a few of you fall into the trap, they will still make money.
It is one of the crypto phishing scams, once you click on a particular link sent to you, they may have access to your device and cart away the valuable assets you store there.
Do not be part of those few.
Conclusion – avoiding cryptocurrency scams
Investing, trading, or saving in cryptocurrency is a viable way to make money online. But if you are so desperate to the extent that you don’t care about the risks involved, you will lose money.
Losing money by mistake or error in your analysis can’t be painful compared to when someone scammed you.
If you want to buy bitcoin or cryptocurrency, use a trusted platform like Buycoins Africa.
To avoid any reason to shed premium tears, note all these 6 kinds of crypto scams listed above and you will be saved to some point.
Avoid fake ICOs, they will rug-pulled you.
Avoid crypto offers on email, avoid any Ponzi scheme in form of multi-marketing marketing and every other thing mentioned in this blog post.
Aside from the listed types of crypto scams, one thing you need to avoid is using any exchange or wallet to store your cryptos.
NOTE: the author is not a financial advisor, take this content as a personal opinion just to help.
If you have any experience you would like to share with others about crypto scams, kindly use the comment box below or send a message to info(at)gbolamedia.com.
If you like this content, you can tip the writer by clicking here, any amount is appreciated.
How to Apply for Google’s 2023 Black Founders Fund
If you’re a black founder and you need funding for your startup operation, Google Black Founders Fund is definitely one of the best investments you should check.
I joined the waitlist last year and yesterday, I received a mail from the marketing coordinator that the tech giant, Google is now accepting applications for its 2023 Black Founders Fund. The application is also open for Latinos founders and if you identified yourself as one, you can apply.
About Google’s Black Founders Fund
Google’s Black Founders Fund is aimed at empowering black entrepreneurs and startups which is part of Google’s commitment to promoting diversity, equity, and inclusion in the tech industry and beyond.
This fund is given out to selected founders without giving Google any equity. The Black Founders Fund was first launched in 2020, and since then, it has provided financial support and resources to Black-led startups in various stages of development.
Last year (2022), the fund awarded a total of $10 million in non-dilutive funding to 76 startups across the US, Canada, and Europe. The funding is intended to help these startups grow and scale their businesses, as well as to connect them with Google’s network of experts, resources, and technologies.
The application process for the 2023 Black Founders Fund is now open, and eligible Black-led startups are encouraged to apply even if you’ve raised pre-seed before now.
But kindly note that the non-dilutive capital is not for every Black Founders or startup, To be considered for funding, startups must meet some criteria and what are they?
Eligibility Criteria for Google’s Black Founders Fund
- Your company or startup must be based or headquartered in the United States. This simply means you must have incorporated your startup in the US.
- You have raised, but not more than $5M from Startup accelerators, investors, VCs, or any institution.
- Your product is already in Beta at least, not just a waitlist or an idea phase
- Your startup must have been making revenue, and you should be able to demonstrate your traction.
- The startup must have a full-time founder/ co-founder who’s black – no hobbyist (sorry).
- The startup must have at least 30% of its ownership retained at the time of application
- Again, you must be able to demonstrate your traction, i.e have a good pitch deck.
These criteria are very simple, they’re basically summarised into four, but for clear understanding, I have to break them into 7.
Startups that meet these criteria can apply for funding by filling out the online application form on the Black Founders Fund website. And here’s how;
How to Apply for Google’s Black Founders Fund
To apply for the 2023 Black Founders Fund, follow these steps:
Go to the official website here
- Enter your email address and click on “CONTINUE”
- Read the application guide carefully before deciding to continue
- Fill out the application form correctly, you’ll submit a pitch deck, a short video introduction, and a one-minute pitch video that explains your startup’s mission, vision, and how you plan to use the funding to grow your business.
- Review your application and finally SUBMIT
Once you submit your application, Google’s team of experts will review and select the finalist and if you’re among the finalists, you’ll receive non-dilutive funding up to $100,000 with some other perks.
Kindly attend to each question correctly because hundreds of startups will be competing for a spot in the finalist row, and the way you will present your startup idea and traction to them is the winning side.
Application Deadline for 2023 Black Founders Fund
The application deadline for the 2023 Black Founders Fund is March 26, 2023, and finalists will be announced in the fall of 2023. Selected startups will receive non-dilutive funding of up to $100,000, as well as access to Google’s network of experts, resources, and technologies which is even more than the $100k funding you’ll be given if selected.
If you’re a Black entrepreneur or startup founder looking for funding and support, the Black Founders Fund is an excellent opportunity to help take your business to the next level. With Google’s support and resources, you can build and scale your business while also promoting diversity, equity, and inclusion in the tech industry.
Good luck with your application!
You may also check Github for Startups
If you’re working on a business idea and you need a co-founder, here is a comprehensive guide to getting one
Microsoft Announces GitHub for Startups (It’s for the big guys)
Like co-pilot, GitHub for Startups is what startup founders need to build, collaborate and ship their product from idea to IPO. Let’s talk about the requirements and how you can apply.
Ever since Microsoft acquires Github, we’ve been seeing some features such as the GitHub co-pilot, the ReadMe project, and many other improvements. The company recently announced a new feature or let me say a new plan and they called it “GitHub for Startups”
In case you don’t know what is GitHub, It is the world’s largest Internet hosting service for software development and version control using Git. Developers in Nigeria can easily work with developers in the United States, India, Canada, and any part of the world.
The company which was acquired by Microsoft in 2018 makes it easy for software developers to collaborate faster and more effectively. Currently, over 80 million developers across the world use GitHub.
Companies like Slack, Coinbase, Spotify, Stripe, and some unicorn startups in the world make use of GitHub for collaboration and most importantly, the enterprise plan because of features like security.
What is GitHub for Startups?
GitHub for Startups is simply GitHub’s enterprise plan for startups.
To understand this, GitHub is free for developers to use, but if you want to get more from using GitHub, you can subscribe to any of its premium plans. Currently, there are 3 pricing plans on GitHub, their pricing is as follows;
- Free – $0
- Team – $48/yr for each user
- Enterprise – $252/yr for each user
If you have 10 developers working in your startup, and you are using GitHub’s enterprise plan, you will be paying $2,520 per year. It increases as the number of developers in your startup increases.
But if you have a startup with a number of developers up to 20 but not more than that, this enterprise plan will be free for you courtesy of GitHub for Startups. It seems like good stuff, right? But don’t answer yet until you know the requirements.
GitHub partners with investors for GitHub for Startups
GitHub is a code-sharing and hosting platform, and now they are dealing with startups. So they partner with top investors, incubators, accelerators, and VCs to make this program more effective. Currently, the partners include;
- Y Combinator
- Andreessen Horowitz
These are five of the biggest startup accelerators in the world right now. GitHub is still accepting applications from those investors or startups who wish to be part of this.
If you have a tech hub, you run a startup ecosystem program, you are an incubator/accelerator, or you are a venture capitalist, click on apply to become a partner on this page.
Back to startup founders or representatives, the question you may have in mind right now is;
What are the Benefits of GitHub for Startups?
If your startup is eligible, you will enjoy all features contained in GitHub’s top premium (Enterprise) plan for up to 20 seats. Not only that, but because it’s for startups, you will also enjoy;
- Access to the best DevOps platform to build your startup with all the technical or developers’ tools you need.
- Also, product guidance for your startup is important to take your startup to the next level because writing code is not always enough.
The question you are asking yourself right now is; “Will my startup be eligible for this GitHub for Startups offer?” Well, I’m partially disappointed because most “startups” who are just starting out and can’t afford this will need to continue using their free organization feature on GitHub because of the requirements…
Requirements for GitHub for Startups
There are just two requirements;
Early-stage but funded startups
The term “early-stage” doesn’t mean “any startup that’s just growing”. If you are just building and you haven’t raised any funds, just forget about GitHub for Startups.
If you are smart enough to say you’ve been funded when you are not, you are just shooting yourself because GitHub has partnered with venture capitalists, investors, and accelerators. It’s very easy for GitHub to verify each application.
You haven’t received GitHub’s Enterprise credit
If by chance your organization has received GitHub enterprise credit before, then this offer is not for you because you’ve enjoyed the offers contained in the GitHub for Startups even before it is publicly released.
If you have been funded up to Series A (not pre-seed o), you can apply for this offer. Here is how to;
How to apply for GitHub for Startups
- Click on “Apply now” on this page to get started. A modal will appear, where you are to:
- Fill in your startup details and then,
- Fill in your billing details, that’s where they will deduct the subscription fee when the first year free plan expires. Then finally,
- Accept GitHub’s terms and Click the sign-up button.
That’s all, then wait for a response. If you have any questions, there is an email address you can contact on the page.
RECOMMENDED: How to find the perfect co-founder for your startup
A personal opinion on this GitHub for Startups
GitHub for Startups is for the big guys for startups who are really in the idea stage, this is what GitHub thinks is fair for them.
It’s like a marketing strategy, if they allow every nook and cranny of startups, it won’t be a good business because, at the end of the first year, many of these startups won’t be able to continue using the plan because they can’t afford it.
Even though the startups they are accepting can afford to spend $20,000 to subscribe for the next 5 years, GitHub still feels it’s better to onboard them first by allowing them to taste the good vibes that come with the enterprise plan because some funded startups use the free plan up till date.
If they see how amazing the enterprise plan is, they won’t be doubting maybe to start paying for it or not.
It’s just like when GitHub co-pilot was released, the AI is so amazing that it can help you write your code with just little editing from you. After a year of its free trial, GitHub started charging for it and I believe some developers will pay because they’ve seen how helpful it is.
Complete Guide to Finding the Right Co-Founder for Your Startup
Building a successful startup requires a lot of steps but a major one is finding the right co-founder or co-founders. Compared to marketing, financing and other particular factors in creating a successful business, finding the right co-founder is quite a herculean task.
If you are not lucky to find the right co-founder, then your startup is dead already unless you get the perfect one as soon as possible.
Some people are so selfish that they don’t want anybody to join hands with them as executives in building a business, they want to have 100% ownership of the startup. If you have this kind of mentality, you should rethink or start a small business and take full control of it.
But if you are thinking of building the next unicorn, then you need people to work with you.
In this blog post, you will learn how to can find the right co-founder that will help you build that idea in your head. But before we dive into the nitty-gritty of finding the perfect co-founder, let’s answer these 3 important questions:
- Who is a co-founder?
- Why do I need a co-founder?
- What are the qualities of the right co-founder?
Who is a Co-Founder?
According to Indeed.com, a co-founder is a member of the executive team who played a role in the founding of a company. This person typically works with other founders to create and launch a business.
You know that a founder is someone with the idea of a business. But due to the fact that no one is an island of knowledge, oftentimes a founder may not have enough funds to finance the idea, or the human resources required to bring the idea to reality. That’s when the idea of having a co-founder comes in.
A co-founder works hand-in-hand with the founder to establish the business and make it successful.
This means that it is possible for a company to have both a founder and co-founder(s) if the business idea came from one person and the other just came later to implement it. In another light, if two or more people put their heads together to formulate the business idea, then they are all co-founders.
A co-founder Vs a CEO
A co-founder may or may not be the CEO. A CEO is the Chief Executive Officer, which means that a CEO is the acting leader of the organization. Most times a founder/co-founder is also the CEO but sometimes a more experienced CEO is hired. Also, a hired CEO does not necessarily take the title of the co-founder since they may not actually take part in building the platform.
The job of a CEO is to coordinate and lead the team, create goals and targets, communicate with other entities, and shareholders, access risks, and so on. So basically the roles of a co-founder and CEO matter but one person can still hold the same title.
Why Do I Need a Co-Founder?
In founding a startup, you can decide to do it solo but it is much better to have a helping hand. The following are a few reasons why you may need to consider having a co-founder:
Being a solo founder is stressful
Starting a business is not an easy task. You will experience a reasonable amount of pressure In trying to put everything in place. The process; ranging from writing code, down to marketing, is not going to be a piece of cake. Sure you might have other employees to share the workload with you but there is a limit to where employees can help you that’s why you need a partner.
“Two heads are better than one.” There will come a time when you might get stuck and need someone to help you up. Note that there is a difference between an advisor and a partner. You might get external advice, fine but you can’t expect someone that is not in it with you to actually know exactly what you need.
In starting up a business you’re in some kind of emotional roller-coaster due to the ups and downs. In this situation, you need someone to share the burden.
In this situation, a close friend or family member will not give you the kind of support you need at that time and to your employees, well you’re their boss and there’s a limit. So, you need a partner.
Think about finances and VCs
Building a startup can be pretty expensive and chances of raising funds or getting donations when you don’t have your product or the prototype ready yet are pretty low. The opportunity of working with a co-founder allows you to share the early costs of the business.
Recommended: YCombinator startup application guide
Besides, it’s very rare to find investors investing in a one-man business. If you’re concerned about your equity, think of this. Would you rather have 100% equity in a company worth $30,000 or 50% equity in a company worth $100,000?
The record of successful companies
Looking at a list of the most successful unicorns in the history of startups like Google, Microsoft, Apple, and Facebook, to mention a few. They all had co-founders when they first started. Although, many people forget this point because as time goes on the company gets associated with one particular person, especially the CEO who usually becomes prominent and famous.
For example when we think of Microsoft – Bill Gates, Facebook – Mark Zuckerberg. But, when we look into the earliest stages we would realize that they were co-founders. This should give a kind of insight into what pattern to follow as to choosing a co-founder or not.
What are the qualities of a good co-founder?
Now that you’re convinced you really need a co-founder, don’t stand jumping into the river without knowing how deep it is. I mean, you don’t select just anybody to be your co-founder.
There are some important criteria that the person you would want to consider as a co-founder must possess. Remember that you’re not aiming at a short-term relationship. Let’s take a look at some of them.
One of the mistakes people make in choosing a co-founder is choosing someone with the same skills they have. You should be looking for someone who is skilled in the areas you are not very skilled in.
If you’re good at building the product and writing the codes then ideally you should have a co-founder who is good at marketing, talking to users, and getting customers.
If you are going to have a team of co-founders you should be looking for varied skill sets not a group of duplicates.
Similar core values and vision
Your co-founder should be of a like mindset. If your vision is to take your business to the global stage then your co-founder has to understand and believe in it. If you have a can-do attitude and an always-ready spirit you most likely wouldn’t want someone who believes in taking things slowly and one at a time.
Although people have different ways of doing things that work differently for different people, you need a co-founder whose views go alongside yours or are at least very similar.
Your co-founder should be someone who understands how businesses work. Not someone who thinks you will start making profits immediately after you start the business. An unrealistic co-founder will lose interest quite easily when their fantasies are not met.
Other qualities the right co-founder should include:
- A co-founder should be trustworthy
- S/he should be committed to the goal as you
- The co-founder should always be ready to adapt to new changes
- Ability to handle conflict and stress
- Such co-founders should be creative with ideas
Now to the bigger question, “How can I find the right co-founder?”.
When looking for the right co-founder, the best place to start looking is among people you already know, your co-worker or your course-mate or close friends. That is of course if you can find someone with the skills you are looking for.
And even if you can’t find a suitable person in your social circle, it’s okay. Just check the steps align below to know how you can get the right partner for you.
5 Ways to Find the Right Co-founder for your Startup
Explore your social circle
If you don’t have someone who has the skills you are looking for in your social circle then why don’t you try expanding your circle? Who knows, someone you know might actually know someone, who probably knows someone with the skillset or experience you’re looking for.
You could make a list of your tech friends then ask each one of them if they know someone with some particular set of skills and then make a list of those people they tell you. If you still can’t find someone suitable ask those new people you’ve been introduced to if they know someone.
That way, if you only have ten people on your lists and each of them tells you about ten persons each, bingo you have one hundred people you can ask to be your co-founder. Gradually, you have a lot of choices of people to choose from.
You can also use social networks like Twitter and LinkedIn to check for the type of co-founder you need and reach out to them.
Attend & Network at tech events
Another cool and popular way of finding co-founders is by attending events, meetups, and hackathons. Go out and actually meet people. You can look up these events where you think you’ll find a lot of relevant people that can have what you need.
This tech event includes the famous Google developer events, Open source communities like OSCA Fest, the tech seminars going on around you or you can look up Meetup.com. They have a website where you can find meetups all over the world and you can find the one close or relevant to you.
The essence of having a meetup or tech event is to learn together and network, but most time, people go to these events to snap pictures and have fun, and maybe you have been one of those people too. Well, the next tech event you will be attending should be to find a potential co-founder for your startup.
I know it’s not easy to network with a stranger especially if you are an introvert like me, but then, if you can’t talk or strike up a conversation with a person, how are you going to tell people about what you are building or build and why they need to use it?
So you have to start practicing now, imagine yourself pitching your startup idea to an investor, swallow the shyness and get that right co-founder!
Use co-founder matching platforms
There are quite a number of matchmaking platforms for startups out there. These platforms have nobody than those with ideas but looking for a co-founder, or someone without an idea but would like to become a co-founder to someone with a startup idea.
Some co-founder matching platforms to consider
- YC Cofounder Matching
- Techstars Startup Weekend
These platforms can be really helpful because they are majorly for finding co-founders so if you are looking for that perfect co-founder, then you should definitely check them out.
Forums may not actually be created for finding co-founders, but you can make use of ones that have a lot of traffic. For example, Reddit, Quora, and Discord have groups dedicated to finding co-founders and they are loaded with people which means you definitely should check them out.
Also, these forums are international and you tend to meet people from different geographical locations so if you are interested in finding a co-founder with a different background to probably expand your horizon or your business then you should definitely use these forums.
Universities (or colleges)
Maybe you’ve probably read online that Bill Gates met his co-founder, Paul Allen in the late 1960s at Seattle’s Lakeside School when he was in eighth grade, Mark Zuckerberg met Eduardo Saverin at Harvard university and they both launched Facebook in 2004.
If we come to Nigeria, Shola Akinlade and Ezra Olubi who founded Paystack met in school. The three founders of Jobberman.com, the largest job listing website in Africa met each other at Obafemi Awolowo University, OAU
Another very helpful way of finding a co-founder is going to a college or university. This is actually very helpful in finding the perfect set of skills you need. For example, you need someone with business and marketing skills; go to a business school, attend their entrepreneur events and get to know people with the exact skill you need.
A piece of advice on finding the right co-founder
Watch before you leap, and not “surface watching”
In finding a co-founder it is important to note that you probably shouldn’t walk up to someone and say let’s start a company together. It is more advisable that if your potential co-founder isn’t someone you’re not sure you can work with, start by building probably a simple project together.
This way you get to see how devoted they are to work if you’re okay working with them and other basic stuff. It is also important not to rule out someone as a potential co-founder if they are only lacking simple learnable skills.
If you get someone who is ready to learn and open to improvement but lacks maybe that skill that can be learned easily, it is better to consider that person than someone who has all the skills but is not open to improvement or corrections.
Avoid future problems, agree on equity spilt immediately
Another important thing to do is the agree beforehand on the equity split. You both should agree on how the profit is going to be shared. Most times it’s 50:50 but you and your co-founder may have other plans.
Although sometimes you may have been working on the business idea before your co-founder comes on board but it’s still okay to make it 50:50 or something very close to that. But then, you guys must agree on it, either it should be 50/50 or 60/40 but a co-founder must have over 10% equity.
Agree on the titles
You should agree on who’s going to be the CEO of the company. The CEO title should be given to the person who would most likely be talking to customers and investors.
If you would like to be the CEO, then you absolutely shouldn’t co-found with someone who also wants to be the boss to definitely avoid future conflicts… Two captains can’t sail a ship unless you want to subscribe for an accident.
You might also be thinking, “if I have a nice business idea, should I wait till I find a co-founder or should I just really go for it?” The answer is yes. If you have the idea and you’re really confident about it then go ahead. You should start building and also be on the lookout for a co-founder while in the process.
Sometimes you might not even get anyone to be a co-founder if they don’t believe in your idea but the fact that you’re already building and they can actually see your plan in action is a good way of attracting the perfect co-founder.
Conclusion: Finding the right co-founder
Once you find the right person and you have both agreed on the important things that have been mentioned above, It is also important to legalize things. You definitely won’t do that at the start of your company but when things start becoming big, then you should definitely have a legal agreement.
With the helpful suggestions above, you have everything you need to know about finding the right co-founder, and good luck in building the next unicorn, we can’t wait to see what solution you’re bridging to the world.