The Making of a Good Partner

Exploring the common denominators of good partners

Painting of Seneca

I've come across a number of people who've asked me what makes a good partner, and this is something I think about constantly. It's similar to the question 'What makes a good founder?

There are many ways to look at opportunities, and each group will have its own framework for assessing them. We like to examine three broad areas before deciding whether opportunities are worth pursuing:

1. Markets: Generally, we prefer large and expanding markets that are untapped or not entirely commoditized.

2. Unit Economics: This essentially refers to the profitability of the product or service being offered at a unit level. It’s about understanding the profitability of each sale at a fundamental level. An opportunity must be able to answer the question, 'How do you make money?' in a very clear and concise manner.

3. Team Quality: Do you and your potential partners have the necessary skills to kickstart the company? If not, are you both capable of bringing in other partners and professionals to de-risk the early stage?"

Essentially, this is what we look for when considering startups to invest in, but we are flipping it around to reflect a potential partner. There is a gray area between the two.