Wednesday 8 May 2019 12:03 pm

Nearly half of co-founders forced to buy business partners out

Nearly half of company co-founders have been forced to buy their business partner out, with most leaders citing disagreements and power struggles as the reason for the split.

New research shows that 43 per cent of business owners were required to buy their co-founders share, with a “difference in opinions for the company’s direction” the most common driving factor.

Read more: London investment fund Fuel Ventures raises £20m for expansion

Founder break ups were usually sparked by a “single specific disagreement” after a period of unrest or disputes within the team. 

Almost three quarters of those surveyed by London venture capital fund Fuel Ventures said they would not consider co-founding a business again, while those who said they would added that they “would only do so with someone they knew well”.

More than half of the 3000 respondents said they chose to co-found their business as they felt “more confident and comfortable” with a partner.

However, 32 per cent admitted they felt “obliged” to have a co-founder after coming up with the idea together.

Read more: Venture capital firm Octopus launches new fund to break £1bn milestone

Fuel Ventures founder Mark Pearson said: “For entrepreneurs all over the globe, having a co-founder offers a great source of confidence, as well as giving people a great chance to bounce ideas and concepts around, and if the relationship is good, a co-founded company can be extremely successful.

“However, as our research shows there can be some negatives to having a co-founder, particularly if you don’t share the same business beliefs, values or ethics.”