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Instead of hiring external CEOs, Gary launches new businesses with trusted employees who've worked with him for a decade. This "family business" model ensures deep alignment, institutional knowledge, and trust from day one, which was key to the successful exits of his companies Resi and Empathy Wines.

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Forbion mitigates risk by repeatedly backing the same successful management teams. After an exit, they often fund that team's next venture. This "founder recycling" strategy leverages proven operational chemistry and execution ability, as seen with the teams behind Gyroscope, IOLOS, and Ferdiva.

The Method Security co-founders spent nearly a decade sharing ideas and trying to poach each other for various ventures. By the time the right idea and technological moment arrived, the team was already a cohesive unit with proven chemistry, eliminating the major risk of founder breakups.

Instead of a traditional president or COO, Todd Graves hired a Co-CEO to find someone demonstrably better than him at his weakest areas (finance, IT, supply chain). The shared title gives them the authority and pride to own these functions, freeing the founder to focus on his strengths like marketing and culture.

The founder's number one piece of advice is to get the co-founder relationship right. While you can pivot ideas, raise more funding, or change markets, replacing a co-founder is incredibly difficult. A strong, complementary founding team is the foundation for overcoming all other startup challenges.

Experienced founders have a critical advantage: they can personally vet key hires based on years of observation. First-time founders often rely on their board's recommendations, which can lead to mismatched hires ("organ rejection") because they lack the firsthand context to judge fit.

When you need to fill a major operational gap, hire for the role (e.g., a COO) before immediately seeking a co-founder and splitting equity. This allows you to "date before you marry"—assessing a candidate's impact and fit as an employee before committing to them as a long-term partner.

The old model of replacing a founder with a 'professional CEO' is often flawed because it removes irreplaceable product insight. The modern approach is for founders to design their executive team to complement their unique strengths, ensuring they stay engaged for the long journey.

Granting a full co-founder 50% equity is a massive, often regrettable, early decision. A better model is to bring on a 'partner' with a smaller, vested equity stake (e.g., 10%). This provides accountability and complementary skills without sacrificing majority ownership and control.

Incubating a company with a proven internal employee who develops an idea, like Every did with Good Start Labs, is a superior model. It bypasses the adverse selection problem inherent in recruiting external founders for pre-formed ideas, as the founder's capabilities and commitment are already known quantities.

Instead of all founders jumping into the venture simultaneously, one can go full-time while others maintain their jobs and provide support. This staggered approach mitigates personal financial risk for the team as the business scales to support more salaries.

De-Risk New Ventures by Co-Founding Them with 10-Year Employees | RiffOn