Latest posts.

For many non-technical founders, the biggest roadblock to launching a startup isn’t lack of ideas, it’s lack of code. You have the vision, the business model, and maybe even early customer validation, but without a technical cofounder, you’re stuck.

Investors also know this. One of the most common questions they’ll ask is: “Who’s building this?” If you don’t have a strong answer, it can be a red flag.

So, how do you find the right technical cofounder? Someone who can not only build your product, but also commit to scaling a company with you? This guide will walk you through the process, from where to look to how to structure the partnership.

Why do you need a technical cofounder?

Not every startup requires a technical cofounder, but for most tech-driven startups, having one can:

• Validate feasibility: Ensure your idea is technically possible before wasting time and money.
• Speed up development: Build faster without relying on outsourced developers.
• Improve investor appeal: Many investors hesitate to back solo, non-technical founders without an in-house technical leader.
• Lower costs: Hiring a CTO or outsourcing development can be expensive; a cofounder is an equity-based partnership.

💡If your product is software-heavy (SaaS, AI, marketplaces, fintech), a technical cofounder is likely a must.

‍Step 1: Clarify what you're looking for

‍Before searching, define exactly what kind of technical cofounder you need.

• What tech stack do you need? Web app? Mobile? AI?
• What skills are required? Frontend, backend, full-stack, machine learning?
• What stage are you at? Idea stage? MVP? Early traction?
• What level of commitment? Full-time? Part-time until funding?

If you’re unsure, talk to technical advisors or developers to refine what skillset is best for your startup.

‍Step 2: Look in the right places

‍Finding the right technical cofounder isn’t just about networking: it’s about showing up where they are.

‍Online platforms

• CoFoundersLab: A matchmaking site for startup cofounders.
• Indie Hackers: A community of builders, great for networking.
• YC Cofounder Matching: Find a cofounder through Y Combinator’s network.
• YC Startup School: Connect with other founders, some of whom are technical.
• AngelList: Many engineers and startup-minded developers are here.
• LinkedIn & X: Post about your search, share insights, and engage with engineers in your industry.

In-person networking

• Hackathons: Great places to meet developers who love to build fast.
• Meetups & Tech Conferences: Look for events on AI, web development, or specific programming languages.
• Startup accelerators & founder groups: Even if you don’t join an accelerator, their events can be great for networking.

🎯Pro tip: Don’t just say “I need a tech cofounder.” Be specific about what you’re building and why it’s exciting.

‍Step 3: Make yourself a strong business cofounder

‍Developers aren’t just looking for any project. They want to work with someone who can execute and bring value beyond code.

To attract a great cofounder, you need to prove that you bring something substantial to the table:

• Market validation. Show you’ve done customer research, identified demand, or secured early signups.
• Business traction. A pre-sell campaign, email waitlist, or strong industry interest can signal viability.
• Fundraising ability. If you’ve raised or are capable of raising funding, that’s attractive.
• Clear vision & strategy. Engineers want to build something meaningful, not just write code.

The more progress you’ve made on your own, the easier it is to convince a technical cofounder to join.

‍Step 4: Start working together before signing an agreement

‍A common mistake is rushing into a cofounder relationship without testing how well you collaborate. Instead:

• Work on a small project together first: A prototype, feature, or market test.
• Set expectations early: Talk about equity, vision, and long-term commitment.
• Assess compatibility: Do you communicate well? Can you handle disagreements?

Cofounder breakups can be as messy as a divorce. 💔 Take time to ensure it’s a good fit before making it official.

‍Step 5: Structure the partnership (equity & roles)

‍Once you’ve found the right person, define roles and ownership.

‍How much equity should a technical cofounder get?

‍Peter Walker, Carta’s Head of Insights, recently shared typical cofounder equity splits from 2022-2024.

Equity splits depend on the number of cofounders, the level of contribution, and the stage at which they join. Based on the data:

‍For two founders:

• 50/50 split. Around 41% of two-founder teams divide equity equally, especially if both contribute equally to the startup.
• 60/40 or 55/45 split. Common when one founder has made more progress or brought in significant resources before the other joined.
• 70/30 or higher imbalance. Less common, but seen when one founder provides most of the capital or work.

For three founders:

• 33/33/33 split. About 21% of three-founder teams divide equity equally.
• 40/30/30 split or similar. Happens when one founder contributes more heavily in terms of capital, traction, or technical expertise.
• Lower ownership for late joiners. If a third cofounder joins significantly later, their share may be smaller, such as 10-15%.

Use vesting to protect the team

‍No matter the equity split, all cofounders should agree to a 4-year vesting schedule with a 1-year cliff. This ensures that equity is earned over time and protects the team in case someone leaves early.

For structuring agreements, consider using platforms like:

• Carta – Equity management for startups.
• Clerky – Legal documents for startup founders.

💼 Investor insight: Investors want to see clarity in your cofounder dynamic. A clear division of responsibilities and a fair equity split are green flags.

‍Common mistakes to avoid

‍🚫 Waiting too long to find one. If your startup is tech-heavy, finding a cofounder should be a priority.
🚫 Offering equity without a vesting schedule. Protect yourself with a standard vesting agreement.
🚫 Focusing on skills over alignment. A brilliant engineer isn’t helpful if you have mismatched values or work ethics.
🚫 Lacking clear expectations. Talk about roles, vision, and commitment before making it official.

‍Conclusion

‍Finding the right technical cofounder is about more than just filling a role, it’s about building a partnership that can turn your vision into reality. By clarifying what you need, showing clear progress, and structuring a fair agreement, you can attract the right person to join your journey. Remember, the stronger your foundation, the more appealing your startup will be to both cofounders and investors. Take the time to build it right.

🚀Looking to connect with the right investors once your technical team is in place? Capwave AI helps founders like you build investor relationships that count. Sign up today and take the next step in your startup journey.

Investors need to see traction early, and a well-run beta test is one of the best ways to demonstrate real user interest, validate your product, and build credibility before raising funds. That’s why beta testing is one of the smartest moves you can make before a full-scale launch. The right beta test can validate your idea, refine your product, and even attract early investors.

In this guide, we’ll walk through how to run a successful beta test, what mistakes to avoid, and how to use your beta to impress investors (even if you have no revenue yet).

What is beta testing and why does it matter? 🧪

Beta testing is the process of releasing your product to a small group of users before a public launch. These early testers provide real-world feedback, helping you:

• Identify bugs and usability issues
• Understand customer behavior and needs
• Validate your market fit with real users
• Build early traction and credibility for fundraising

💡 Slack started as an internal tool at a gaming company. Their beta testing process helped them realize the real product was team communication, not gaming. Today, Slack is worth billions.

‍Step 1: Define your beta testing goals

‍Before inviting users, get clear on what you want to learn. Are you testing:

• Usability? (Do users understand the product?)
• Technical stability? (Does the product work smoothly?)
• Feature validation? (Which features do users actually care about?)
• Conversion paths? (Do beta users take the actions you expect?)

🎯 Pro tip: Choose one primary goal to keep the test focused.

‍Step 2: Build a beta tester group

‍Your beta users should match your ideal customer profile. You don’t need 100 beta testers, just around 10-20 active ones that match your target audience. Start with:

1. Existing network – Friends, colleagues, LinkedIn connections
2. Online communities – Reddit, Indie Hackers, Facebook groups
3. Beta testing platforms – Betalist or Product Hunt
4. Landing pages & waitlists – Tools like Carrd or Tally make it easy to collect signups

💡 Dropbox’s beta strategy required users to invite friends to get access, creating a viral waitlist effect.

‍Step 3: Set up a feedback loop

‍Feedback is the most important part of a beta test. Structure it well:

• Recruitment: Read this article for a playbook in email personalization
• Surveys & forms: Use Typeform or Google Forms for structured feedback
• Virtual user interviews: One-on-one calls for deep insights. Bring along a virtual notetaker like Fathom for advanced insights
• Analytics tracking: Stay organized with tools like Notion, use Hotjar for heatmaps, or Mixpanel for user behavior
• Slack or Discord groups: Create a space for open discussion

💡 Instead of vague questions like Did you like the product?, ask:

• What problem were you hoping this product would solve for you?
• Which features were the most useful to you?
• What alternative solutions or competitors have you used? How does this compare?
• If you could add any new feature, what would it be?
• What’s the most frustrating part of using this product?
• What did you expect it to do that it didn’t?
• Would you recommend this to a friend? Why or why not?

Step 4: Iterate and improve

‍Now, it’s time to act on the feedback. Prioritize based on:

• Critical bugs: Fix anything that blocks core functionality.
• UX issues: If users are confused, rethink your onboarding and design.
• Feature validation: If users don’t care about a feature, consider removing it.
• Focus on the value add: Double down on what users love most. Identify the features that provide the most value and make them even stronger. Your product needs to solve a real problem in a meaningful way.

💼 Investor insight: Showing how you’ve iterated based on beta feedback makes a great story for pitch decks. Investors love data-driven improvements.

‍Step 5: Use beta results to impress investors

‍Even if you have no revenue yet, your beta results can be powerful proof of traction. Here’s how to frame it:

• User growth: "We had 75+ beta signups in 3 weeks."
• Engagement: "80% of beta users returned within 7 days."
• Feedback: "75% said they would pay for the product."

💼 Include beta stats in your investor pitch: tools like Capwave AI can help you refine your deck.

‍Common mistakes to avoid 🚫

• Skipping a clear goal: if you don’t define what success looks like, you’ll drown in feedback.
• Testing with the wrong audience: your mom loves your startup, but she’s not your target customer.
• Not collecting usable data: avoid vague feedback like “It’s cool.” Ask specific questions.
• Launching too late: you don’t need to be perfect. Test early, test often.

Capwave’s top picks

• Typeform – Create seamless surveys and forms
• Product Hunt – Engage in discussions, launch your product, and gain early traction
• Notion – Organize beta testing feedback and track iterations
• Fathom – Record and analyze user interviews to capture key insights
• Slack – Create a community for beta testers and facilitate real-time discussion

🚀 Need help refining your investor pitch based on beta feedback? Capwave AI makes it easy to sharpen your deck, and connect with the right investors who want to fund you. Sign up today to start your fundraising journey smarter.

Introduction

In a world where countless startups are competing for attention, making your product stand out isn’t just a nice-to-have, it’s essential for survival. Differentiation is the key to winning over customers, investors, and the market at large. But how do you set yourself apart when competitors seem to have similar offerings? In this blog, we’ll explore practical strategies to position your product as a unique, must-have solution.

1. Understand your competitors inside and out

To stand out, you need to know what you’re up against. Understanding your competitors’ strengths, weaknesses, and positioning helps you identify gaps and opportunities.

How to do it:

• Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) for your top competitors.
• Analyze their customer reviews to uncover common complaints or unmet needs.
• Study their messaging and branding across all channels (website, social media accounts, etc) to find ways to differentiate your voice.

2. Define your unique value proposition (UVP)

‍Your UVP is what makes your product different and better than others in the market. Without it, your offering may blend into the noise.How to do it:

• Ask yourself: What specific problem does your product solve better than anyone else?
• Focus on outcomes: How does your product improve your customers’ lives or businesses?
• Make it clear and concise. Your UVP should be memorable and easy to understand.

💬Example: Slack’s UVP is its ability to streamline workplace communication, saving time and reducing email overload.

‍3. Double down on customer experience

‍A great customer experience (CX) can turn customers into loyal advocates. It’s a powerful differentiator that competitors can’t easily replicate.

‍How to do it:

• Simplify onboarding to help users see value quickly.
• Offer responsive, human-centered support to address customer concerns.
• Continuously collect feedback and iterate to exceed customer expectations.

4. Innovate beyond features

‍Competing on features alone is a race to the bottom. Innovation can set you apart by creating a product experience that competitors can’t match.How to do it:

• Focus on usability: Is your product more intuitive or enjoyable to use?
• Incorporate unique design elements or branding.
• Explore adjacent solutions or complementary features that provide added value.

💬Example: Apple stands out not just for its products but for its design, ecosystem, and user-friendly interfaces.

‍5. Highlight social proof

‍Customers trust other customers more than they trust brands. Social proof builds credibility and trust for your product.

‍How to do it:

• Showcase testimonials, case studies, or reviews prominently on your website.
• Leverage influencer endorsements or partnerships within your niche.
• Highlight user metrics (e.g., “Over 10,000 teams use our software”) to build authority.

6. Build a strong brand identity

‍A memorable brand can differentiate your product even in a crowded market. People don’t just buy products; they buy stories and values.

‍How to do it:

• Develop a consistent visual identity (logo, colors, fonts) that resonates with your target audience.
• Create a compelling brand story that connects emotionally with your customers.
• Communicate your mission and values authentically.

💬Example: Patagonia’s brand identity revolves around environmental activism, which resonates deeply with its customer base.

‍7. Focus on niche markets

‍Trying to appeal to everyone often leads to generic offerings. Targeting a specific audience allows you to become the go-to solution for that group.

‍How to do it:

• Identify underserved segments within your market.
• Tailor your messaging and features to meet their unique needs.
• Build a community around your product by engaging directly with niche users.

💬Example: Bumble differentiated itself in the crowded dating app space by focusing on women making the first move.

‍Conclusion

‍Differentiating your product in a competitive market requires a deep understanding of your customers, competitors, and unique strengths. By crafting a compelling UVP, prioritizing customer experience, and building a strong brand, you can create a product that doesn’t just compete — it stands out. Remember, differentiation is an ongoing process; continue to adapt and innovate to stay ahead of the curve.

Introduction

Building a startup is no small feat, and having the right support system can make all the difference. A board of advisors offers expertise, connections, and credibility, helping founders navigate challenges and make informed decisions. In this blog, we’ll explore what a board of advisors is, why every startup should consider building one, how to find the right advisors, and how to structure their compensation, including a breakdown of equity benchmarks.

What is a board of advisors?

A board of advisors is a group of experienced professionals who provide guidance and strategic insights to your startup. Unlike a board of directors, advisors don’t have legal responsibilities or decision-making power, making their role more flexible and informal. Some typical characteristics:

• Typically includes industry experts, seasoned entrepreneurs, or investors.
• Focused on advising on specific areas such as fundraising, scaling, or product strategy.
• Offers guidance without the legal and fiduciary obligations of a formal board of directors.

Why do startups need a board of advisors?

Having a board of advisors can bring immense value to your startup:

1. Strategic guidance: Advisors provide specialized knowledge in areas where your team may lack experience.
2. Credibility boost: A strong advisory board signals to investors and stakeholders that your startup is serious and well-connected.
3. Network access: Advisors open doors to valuable connections, including potential customers, partners, and investors.
4. Fundraising support: Advisors can help refine your pitch, provide warm introductions, and validate your business to VCs.

How to find the right advisors

The success of your advisory board depends on choosing the right people. Here’s how to find and recruit them:

• Identify your needs: Determine which areas of your business need the most guidance (e.g., marketing, technology, operations).
• Leverage your network: Start by reaching out to mentors, industry contacts, or investors who align with your needs.
• Attend events: Networking at industry events or startup competitions can connect you with potential advisors.
• Use online platforms: Platforms like LinkedIn or networking groups like The Fourth Effect and Angel Capital Association can help you identify and approach experienced professionals.

When reaching out, be clear about your expectations, the time commitment involved, and the value they’ll gain by joining your journey.

How to structure advisor compensation

Compensating your advisors fairly is crucial to building a strong and committed board. Equity is the most common form of compensation for advisors in startups. A graph shared by Peter Walker on LinkedIn outlines typical equity benchmarks for advisors based on their involvement and the startup’s stage: 

‍

Key takeaways from the graph:

• Early-stage startups: Advisors typically receive higher equity percentages due to higher risks and fewer cash resources.
• Later-stage startups: Equity percentages decrease as startups gain traction, but advisor roles become more specialized.
• Strategic vs. general advisors: Strategic advisors with niche expertise or extensive networks command higher equity stakes.

Tips for offering advisor equity

1. Time-based vesting: Implement vesting schedules (e.g., 2-3 years) to ensure advisors remain engaged.
2. Role-specific adjustments: Adjust equity offers based on the depth of involvement—a hands-on strategic advisor may warrant more equity than a passive advisor.
3. Market benchmarks: Use benchmarks to ensure your equity offers are competitive yet sustainable.
4. Set clear expectations: Define specific roles, responsibilities, and deliverables tied to equity compensation.

Conclusion

A well-structured board of advisors is a game-changer for startups, providing the guidance, credibility, and connections needed to thrive. By understanding what advisors bring to the table, finding the right people, and compensating them fairly, you can set your startup up for long-term success. Leveraging tools like equity benchmarks ensures that your advisor relationships are both strategic and sustainable—benefiting your team, your advisors, and your investors alike.

Why fit matters in fundraising 🤝

When fundraising, it’s easy to feel like the power dynamics are tilted in favor of investors. But it’s important to remember that choosing an investor isn’t just about securing capital — it’s about finding the right partner for your business. A strong fit ensures a long-term partnership where strategy is aligned, value extends beyond capital through expertise or networks, and cultural alignment minimizes friction to keep your startup moving forward. Let’s walk through what you should be looking for in VC and angel investors while capital raising. 

Create your own investor criteria 📊

Before pitching, take time to define what you need in an investor. By setting clear benchmarks and criteria, you can evaluate potential partners more effectively. Here are some key areas to consider:

• Industry expertise: Do they have experience in your sector or with similar business models?
• Network access: Can they introduce you to customers, partners, or follow-on investors?
• Support style: Are they hands-on or hands-off, and which approach works best for you?
• Track record: Have they successfully supported startups at your stage of growth?
• Alignment on exit strategy: Do they share your vision for the future, whether it’s scaling to IPO or pursuing acquisition?

Ask investors questions too: it’s a two-way street! ↔️

Remember, fundraising is as much about you evaluating investors as it is about them evaluating you. Approach meetings with the mindset of a mutual interview. During conversations, look for signs of alignment and partnership potential:

• Ask about their portfolio: What companies have they invested in, and how have they supported them?
• Understand their expectations: What do they look for in a founder, and how do they measure success?
• Gauge their involvement: How often do they interact with portfolio companies? Are they accessible during critical moments?
• Talk to a founder in their portfolio: Reviews are always helpful. What do the other founders in their portfolio have to say about their experience?

Red flags to watch for 🚩

Not every investor is the right fit, and it’s important to spot warning signs early. Here are some red flags to keep in mind:

🚩Misaligned priorities: If they push for rapid growth at the expense of sustainability, it may create tension.

🚩Lack of transparency: Avoid investors who are vague about their decision-making process or terms.

🚩Negative feedback: Speak to other founders in their portfolio and look for patterns of dissatisfaction.

🚩Overstepping boundaries: Watch out for investors who want too much control or involvement in day-to-day operations.

Trust your instincts and don’t be afraid to walk away if something doesn’t feel right.

Building a strong, mutually beneficial relationship 🌟

Once you’ve identified the right investor, focus on building a strong partnership. Here’s how to make the most of your relationship:

• Set clear expectations: Align on roles, communication frequency, and milestones early.
• Leverage their expertise: Don’t hesitate to seek advice or ask for introductions — that’s part of their value.
• Communicate openly: Keep them informed about progress, challenges, and pivots to maintain trust with regular updates.

A strong relationship can make all the difference as you navigate the ups and downs of scaling your business.

Finding the right investors with Capwave

Fundraising is about more than just securing a check, it’s about finding the right partner to support your vision. With Capwave, you can streamline the process of identifying investors who align with your goals, values, and strategy. Our investor bios help you evaluate fit, set clear benchmarks, and approach conversations as a mutual evaluation, ensuring you build relationships that drive long-term success. Remember, the right investor isn’t just a source of capital — they’re a collaborator in your journey, and Capwave is here to help you find them.

Introduction

The startup world is full of myths that can mislead even the most ambitious founders. From funding misconceptions to unrealistic growth expectations, these myths often set entrepreneurs up for unnecessary challenges. In this post, we’ll debunk some of the most common startup myths, so you can navigate your journey with clarity and confidence.

Myth 1: You need a perfect idea to start

Reality: Successful startups often begin with imperfect ideas that evolve over time. What matters most is execution and adaptability. Many iconic companies, like Instagram and Slack, started as something entirely different before pivoting into their current forms. Instead of chasing perfection, focus on:

• Solving a real problem.
• Gaining feedback early.
• Iterating quickly based on customer needs.

Myth 2: You need to raise a ton of funding to succeed

Reality: While raising funds can help accelerate your growth, you don’t need millions to get started. Many successful startups begin by testing their ideas with minimal resources, generating early revenue to fund operations, and raising only what they truly need to reach their next milestones. Focus on proving your concept and creating value first — funding will follow as a natural next step when it aligns with your growth goals.

• Test your idea with minimal resources.
• Generate revenue early to fund your operations.
• Evaluate how you’ll use the funding to support your long-term goals.

Myth 3: A great idea will automatically attract investors

Reality: A great idea is just the starting point. Investors care more about execution, market potential, and your ability to build a sustainable business. 

• To attract interest, demonstrate traction through customer discovery, beta tests, or early revenue. 
• Show that you’re solving a real problem for a validated market. 
• A well-thought-out plan and evidence of progress will make your idea far more compelling.

Myth 4: You must scale as fast as possible

Reality: Rapid scaling without a strong foundation can lead to operational chaos and burnout. Sustainable growth is often more beneficial in the long run. Instead of chasing growth at all costs:

• Focus on building a solid product-market fit.
• Ensure your team and systems can handle increased demand.
• Prioritize quality over quantity in your growth efforts.

Myth 5: You need a perfect product to launch

Reality: Many successful startups begin with a Minimum Viable Product (MVP) rather than a fully polished solution. An MVP allows you to test your concept, gather valuable feedback, and iterate quickly. Waiting for perfection can delay progress and prevent you from learning what your customers truly need. Launch with what’s functional and improve as you go—investors value adaptability and customer-driven development.

Myth 6: A great product sells itself

Reality: Even the best products need strategic marketing and sales to reach the right audience. Founders often underestimate the importance of visibility. To ensure your product gains traction:

• Invest in storytelling and branding.
• Build a go-to-market strategy.
• Leverage your network and partnerships for distribution.

Myth 7: You need to work 24/7 to succeed

Reality: Hustle culture glamorizes overwork, but burnout is a real risk for founders. Building a startup is a marathon, not a sprint. Sustainable success requires balance. To avoid burnout:

• Set boundaries and prioritize self-care.
• Delegate and build a strong team.
• Focus on high-impact activities instead of being busy for the sake of it.

Myth 8: You have to do everything yourself

Reality: Trying to wear all the hats can slow you down and lead to inefficiencies. Successful founders know when to delegate or bring in experts. Consider:

• Outsourcing tasks that aren’t your strengths.
• Hiring strategically to complement your skills.
• Leveraging tools and technology to streamline operations.

Myth 9: Startups only succeed in big cities

Reality: With remote work and online resources, startups can thrive from anywhere. Many founders are building successful companies in smaller cities or even rural areas. To leverage location independence:

• Tap into global talent pools.
• Take advantage of lower costs in non-metro areas.
• Use online platforms to connect with mentors, investors, and customers.

Myth 10: Failure means you’re done

Reality: Failure is often a stepping stone to success in the startup world. Many renowned founders failed before achieving greatness. The key is to learn from mistakes and keep going. When facing setbacks:

• Analyze what went wrong and why.
• Use lessons learned to improve your next venture.
• Stay resilient and focus on growth.

Conclusion

The startup world is challenging enough without falling for common myths. By debunking these misconceptions, you can focus on what truly matters—solving problems, building relationships, and driving meaningful growth. Remember, there’s no one-size-fits-all formula for success, but staying informed and adaptable will help you navigate your entrepreneurial journey with confidence.