You have a great list, but as a potential (and very reluctant) technical co-founder candidate, i'll two more major items to the list:
3. UPFRONT RISK: If you are doing this with sweat equity (no salary) then the Technical Co-Founder is taking almost all the risk. They are putting in all the time upfront, before the Business Co-Founder does. Smart Business Co-Founder would sell the idea to potential customers also, or get POs, or raise funding to pay for the technical effort, or invest their own $ to pay for the technical effort. However, a situation where one co founder (technical) puts in all the effort while the other gets a free option to put in effort later, is a very bad setup.
4. LEVERAGE: The Business Co-Founder essentially gets more leverage the more work the Technical Co-Founder does -- because now there is sunk-cost and a psychological shackle. The Technical Co-Founder just wants to be done with the build-out so the business can proceed and make money -- but the Business Co-Founder has every incentive to expand the MVP more and more since they are putting in no effort (possibly have not quit their job either) and wants more and more before the system can be sold.
ADVISE TO POTENTIAL TECHNICAL CO-FOUNDERS
- You be the "Business Co-Founder" also, no need for another person
- If there is a Business Co-Founder, equal out the contribution at every stage. A PRD is not enough to equal out a build-out. Some ways to equal out the contributions:
- Business Co-Founder has proven record that attracts success guaranteed (e.g., prior major exits, IPOs, huge online following, extreme case would be Elon -- i'll be a technical co-founder for him any day :-)
- Business Co-Founder sells concept to clients, gets Purchase Orders before build-out
- Business Co-Founder gets huge list of potential customers, ideally with pre-orders
- Business Co-Founder raises funding and pays technical co-founder for upfront effort
- Business Co-Founder puts down their own money (or takes a loan) to pay Technical Co-Founder for upfront build
3. UPFRONT RISK: If you are doing this with sweat equity (no salary) then the Technical Co-Founder is taking almost all the risk. They are putting in all the time upfront, before the Business Co-Founder does. Smart Business Co-Founder would sell the idea to potential customers also, or get POs, or raise funding to pay for the technical effort, or invest their own $ to pay for the technical effort. However, a situation where one co founder (technical) puts in all the effort while the other gets a free option to put in effort later, is a very bad setup.
4. LEVERAGE: The Business Co-Founder essentially gets more leverage the more work the Technical Co-Founder does -- because now there is sunk-cost and a psychological shackle. The Technical Co-Founder just wants to be done with the build-out so the business can proceed and make money -- but the Business Co-Founder has every incentive to expand the MVP more and more since they are putting in no effort (possibly have not quit their job either) and wants more and more before the system can be sold.
ADVISE TO POTENTIAL TECHNICAL CO-FOUNDERS
- You be the "Business Co-Founder" also, no need for another person
- If there is a Business Co-Founder, equal out the contribution at every stage. A PRD is not enough to equal out a build-out. Some ways to equal out the contributions:
- Business Co-Founder has proven record that attracts success guaranteed (e.g., prior major exits, IPOs, huge online following, extreme case would be Elon -- i'll be a technical co-founder for him any day :-)
- Business Co-Founder sells concept to clients, gets Purchase Orders before build-out
- Business Co-Founder gets huge list of potential customers, ideally with pre-orders
- Business Co-Founder raises funding and pays technical co-founder for upfront effort
- Business Co-Founder puts down their own money (or takes a loan) to pay Technical Co-Founder for upfront build