Ask HN: What do I tell my co-founder when he asks access to the source code?
I have a bootstrapped startup. A co-founder has joined me recently, he is a front end guy, and inclined on learning the backend stuff.
I have put in 6 months of effort building the entire codebase and business. He keeps asking me access to the source code?
If I give access to it, I fear I might loose all that which I have created. If things are good, as of now, everything might work well, but in case of disagreement, I can't go to his laptop/dropbox/drive and delete all the codebase.
OTOH If I put a blatant no on his face, he might feel bad, and get a feeling that I do not trust him.
What shall I do in this situation?
Since the business has not picked up, all the worth that my startup has is the source code. Once I get customers, they will be my worth. So how do I go about it?
38 comments
[ 3.1 ms ] story [ 84.3 ms ] threadIf you can't trust your co-founder with the code base, then I wouldn't even think of co-founding the business with him. Maybe you should re-evaluate that first.
He appears genuine to me, but still, one should be cautious and keep in mind and think for future, if something goes wrong, precautionary measures should be in place.
It will take some more time, and some sort of litmus test to validate if he is trustworthy. All that glitters is not gold, right?
Links for reference: http://en.wikipedia.org/wiki/Non-disclosure_agreement http://en.wikipedia.org/wiki/Non-compete_clause
It sounds like you either don't want a co-founder and just need a front-end contractor or you need embrace him/her as a co-founder and share your codebase.
I make sure people gel well with me, but you can't give everything you got to a new comer, no matter how genuine he appears, right?
You shouldn't have found a cofounder if you're not willing to do this.
And 3 months down the line I later realize, some friend of his, is running a similar startup??
In any case, having access to your source code will not be an advantage in competing. Building new products is hard because you are at the time also figuring out and changing what to build.
If your idea is any good and has proven moderately successful, there will be competitors. Competitors who are not your co-founder and have never spoken to either of you, but just see your product and decide that it would be cool to have it in their city, country or business niche. And they will spend only 1/10 of your efforts on development and end up with a more maintainable codebase, because they have an example of what to build right from the start.
Why on earth is he to trust you, but not vice versa?
You two are now equals and peers and it's time for you to start acting like it. If that's unacceptable to you then you never should have put yourself into this situation - a cofounder is not an employee.
> Since the business has not picked up, all the worth that my startup has is the source code.
I believe this worth is zero. Unless you have built a solution to a cutting-edge, patentable Computer Science problem (for example a face recognition algorithm that beats all competition), the source code itself has no value.
General web/mobile/desktop app source code is too specific for the particular purpose to be useful for other apps - and a competent team could rewrite the common parts faster than it takes to understand and adjust existing code. You will not find anyone willing to pay for the source code unless you are also selling patents, the team or user base along with it.
A co-founder is not just some random person with complementing skills. It's more like a marriage. And while marriages often start out good and, yes, can turn bad, it's quite unusual to not trust your newlywed wife with the keys to the cupboard.
I'm not trying to be negative here, but it seems that you're afraid your co-founder is learning too much about backend development, so he can steal your codebase and his front-end design, and steal your entire business and become an instant millionaire. Or he could actually be genuine, and willing to take the risk and reward together with you. Out of these two, which option seems more likely to you?
You say it yourself: you have no customers yet. You can't just steal a codebase and copy/paste an entire business to success. Per your words: 'once I get customers'. You don't have customers yet, ergo you have nothing. Stealing your codebase wouldn't make any difference.
You have to ask yourself if this person is really the person you want to start a company with, and work closely with for years to come. If he is: give him access. If he isn't: do both of you a favor and part ways. Nothing good will come out of this if you make him earn your trust whilst being co-founder at the same time.
So, assuming we're actually talking about employee #1, I think having some measures in place is a smart idea. Just like a prenuptial agreement before marriage. Sure, you may be 'in love' with this person now, but people change, things can get nasty, and it's good to have thought ahead instead of being completely blinded by love/trust.
I know most people are saying 'the codebase is worth nothing', but depending on the project this may not be the case. We all like to look at successful software products and say "Meh, I could clone that in a weekend, it's not about the code", but in reality there are probably hundreds of edge cases that we haven't thought about until we're actually building it ourselves. As well as that, polish takes time. UI/UX polish, refactoring code, simplifying how components interact with each other, iterating, etc.
If somebody wants to go compete with you by building the product themselves, then wish them luck, because they have no idea how many intricacies there are in most software products, and by the time (months or years in the future) that they figure them all out, you'll already be way ahead.
But if they can just copy and paste a folder and be in the exact same starting position as you, then the only advantages you have are non-technical - which you should of course also have, but don't underestimate the value of a good technical advantage as well.
"Once I get customers, they will be my worth"
Sure and what about your co-founder ?
"but in case of disagreement, I can't go to his laptop/dropbox/drive and delete all the codebase."
No you don't want to do that. Do we need to tell you why ?
1. Sort out your trust issues 2. Move separate ways by buying out the other guy
Then:
Give him source code. Or get a co-founder you trust. Or go solo. Or close up and do something else.
Btw, your company is worth zero right now anyway, most likely. Go ahead and try to sell your company right now. Get a firm bid.