Everyone says a startup’s success depends on its people. But here’s the uncomfortable truth: most startups don’t fail because of the product or market. They fail because the co-founders can’t make it work together. It’s not a secret. In fact, 65% of high-potential startups fail due to co-founder conflict. Most of that drama? Completely preventable. So why do so few teams do the work up front? Because no one teaches you how.
We just hosted Annie Garofalo of Confidante for a no-fluff webinar on building thriving founder relationships - and she brought the receipts. Annie’s spent years inside the trenches with early-stage teams, drawing on organizational psychology, coaching, and research from Stanford, Harvard, and the Gottman Institute. She didn’t just talk theory. She shared a practical toolkit, the kind of stuff that stops conflict before it turns nuclear.
When founders come together, everyone’s optimistic. But it’s one thing to share a vision, and another to handle disagreement, disappointment, or stress, especially when the stakes are high.
That’s why Annie encourages teams to approach the early days as a genuine trial period, not just a handshake deal.
Spend time in situations that aren’t ideal like planning an event, handling last-minute changes, or working through a tough client call. Agree up front that you’ll check in honestly about how it’s going, no pressure to commit before you’re sure. Some teams set clear objectives and timelines, while others create high-stress scenarios to see how people really respond.
The goal isn’t to “test” each other in a harsh way, but to let real personalities and working styles show up before the pressure of funding or deadlines makes it harder to talk about problems.
It’s easy to put off conversations about “what if things don’t work out.” But those talks are exactly what keep misunderstandings from turning into resentment.
Annie suggests putting together a social contract which is a document that covers:
- How decisions will get made.
- What’s non-negotiable for each person
- How the team wants to handle conflict, and what happens if someone needs to step away
It’s not a legal contract, and it doesn’t need to be perfect. It just needs to be honest. When teams have these conversations early, it creates room for people to express what matters most, before small differences get magnified under stress.
We all have blind spots. Maybe you think you’re being clear, but your co-founder feels out of the loop. Or you avoid disagreements, thinking you’re keeping the peace, when really things are simmering beneath the surface.
Annie shared a simple working style quiz that helps team members map out both how they see themselves, and how others see them. It’s surprising how often there are gaps. These little mismatches can lead to quiet frustration, or months of miscommunication that never quite gets resolved.
By making these perceptions visible, teams can adjust, clarify, or simply talk through things that would otherwise get swept under the rug. Even a short conversation can reset expectations and head off bigger problems later on.
Annie shared frameworks, worksheets, and processes to help set up startups for success. On the webinar we didn't just have Founders, but also Chief of Staffs, Talent Leaders, and Heads of Platform - why? Because not only are they exposed to the inner workings and culture of their teams but these frameworks can be use to:
- Build culture
- Build recruiting processes
- Help to identify needs across the business
- So much more
This really is a MUST WATCH webinar with so much free content that it almost feels like stealing!
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