RESOLVING THE LEDGER
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See the full story · 1 sourcesIf a founder's startup feels like their baby, their cofounder may very well feel like a spouse. Getty Images; Alyssa Powell/BI
As startup activity rises in the US, founders face a crucial early decision: who to build with.
BI asked three sets of cofounders how they built strong relationships and how they'd handle a split.
They shared which conversations to have early, before avoiding them becomes costly.
You've been imagining this moment for a while. Maybe spent weeks having long, potentially tough conversations in preparation. Now, it's finally time to pop the question:
"Will you be my cofounder?"
Interest in entrepreneurship appears to be rising in the US, with new business applications already up by more than 450,000 in the first half of 2026 compared with the same period last year, according to the US Census Bureau.
If a founder's startup feels like their baby, their cofounder may very well feel like a spouse. Once they've chosen that special someone, setting the right guardrails for that partnership is crucial. In some ways, AI has made these decisions even more important as business teams get smaller, companies move faster, and the pressure becomes more concentrated.
Business Insider asked three sets of AI startup cofounders what early conversations have led to successful partnerships, and how they determined who gets what if things go wrong. They shared the key elements of their early agreements, along with what they'd put in their ideal "cofounder prenup." Their words have been edited for length and clarity.
Business Insider wants to talk to founders of AI-powered companies with fewer than 10 workers, and employees working alongside AI agents, to understand what the "Tiny Teams" era really feels like — the wins, the fears, and the human skills that stand out. Share your story by filling out this quick form .
Agree on what being committed means for you
Cofounders David Emelianov and Jordan Gatson say the first step to a successful partnership is determining whether the goal is to sell the company or build it for the long term. Courtesy of David Emelianov
David Emelianov is a 32-year-old software engineer and entrepreneur, based in the Bay Area. He and his cofounder, Jordan Gaston, sold their app , Trimbox, for $4 million at the end of 2025.
I think there are three conversations every cofounder should have before writing a single line of code: What kind of company are you actually trying to build, what level of commitment does everyone expect, and what happens if someone wants out.
Sit down and decide if you're trying to build a venture-backed, winner-take-all company where the goal is to swing for the fences, or if you want to build a profitable bootstrapped business that throws off cash. Neither answer is right or wrong, but they're very different games.
If one founder is optimizing for a $20M acquisition and the other wants to build a 30-year company, you're going to run into problems eventually.
The second conversation, though, has become especially important for me over time. Earlier in my career, I would have assumed everyone should be 100% focused on one company. Today I think differently. I work on multiple projects at once, and I actually think that makes me a better entrepreneur because ideas, lessons, and opportunities transfer between businesses.
The important thing isn't that everyone works the same way; it's that everyone agrees on what "committed" actually means. Is it OK to have side projects? Consulting? Angel investing? Starting another company? Those expectations should be crystal clear from day one.
If I had to pick just one conversation to have, though, it'd be the first one. You have to make sure you're playing the same game before it begins.
Define different exit scenarios early
Cofounders Shalini Aggarwal and Andy Ratsirarson emphasize having the hard conversations before emotions and money become involved. Courtesy of Andy Ratsirason and Shalini Aggarwal
Shalini Aggarwal is a 50-year-old CEO in San Jose, California, and Andy Ratsirarson is a 37-year-old CTO. The two left Amazon at different times and reconnected as cofounders of Tenfali, an AI startup.
We believe a cofounder prenup should include the things that are easy to ignore when everyone is excited about an idea. This includes equity split, vesting schedule, IP ownership, roles and responsibilities, how major decisions get made together, and, importantly, what happens if someone leaves.
You need to have an honest conversation about expectations before things get hard, and find out what happens if one founder can no longer give the company the same level of commitment.
For example, what happens if there is an acquisition offer, if one founder wants to keep going, and the other does not? The goal is not to assume the relationship will fail, but to protect the company and the relationship by making the hard conversations explicit before emotions and money are involved.
You also need a shared framework for resolving problems, because conflict is inevitable in a startup. Customers may be slow to convert, the product may need to change, or money may get tight. In those moments, the question is not whether you will disagree, but how you will make decisions when you do.
Once both founders are aligned on a decision, there cannot be a blame game later. It becomes a shared decision, and both people have to own the outcome. Those conversations can feel uncomfortable early, but they are much harder to have later.
Decide whose call is final …
Joe Cheuk and Praneet Dutta, Pomo cofounders, say their cofounder prenup would outline how to keep the company moving forward if they were to disagree on a key decision. Dan Clark
Praneet Dutta is a 32-year-old CEO and cofounder at AI startup Pomo . He's based in Palo Alto.
A cofounder prenup, for me and my cofounder Joe, is about what happens in the 30 minutes after we both think we're right and disagree on how to move forward. We had it ...
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