Do you really need a co-founder? I think co-founders are over-rated. > You need to have someone in the team that can fix a crashed server at 3am, or burn the m

Do you really need a co-founder? I think co-founders are over-rated. > You need to have someone in the team that can fix a crashed server at 3am, or burn the midnight oil to hit a new feature deadline. Almost every contractor I've worked with on elance has been willing to work whatever hours were required. For $5 an hour. Why give up precious equity for something you could hire out for a few dollars an hour? > To date I have been using a contractor to build Satago, and whilst he is very good (one of the best developers I’ve worked with to be honest, but sadly based very far away from me in Russia) the fear is that without the large chunk of equity that a co-founder would be working towards, he could just down tools, and then Satago would grind to a halt. If I were you I would find a few other good developers to work with. Elance has them in abundance and they'll be more than happy to work for you at $5-$10/hr. (I prefer fixed-budget projects, personally.) Here's how I get projects done: I take a few INDEPENDENT features from the product roadmap, set clear expectations with the developers, hand off the code, iterate, finalize, then pay my main developer to integrate their code into the main code-base. In my case I'm the lead developer so I do the code integration, in your case maybe it would be your contractor from Russia. If the developers I've hired write good code and deliver as promised I keep them. If they don't I move on to someone else. In one year I've gone through 6 developers and kept 2 of them. 2 competent, hard working, reliable developers. When I said "set clear expectations", some expectations I've found useful to establish with a contractor are: clearly define the project specifications (you need to be able to tell them exactly what needs to be done), clearly define the project deadlines (first iteration due in 2 weeks), clearly define the budget ($300 for features X, Y, and Z), and clearly define the communication requirements (respond to emails within 24 hours, provide constant work status updates). It's also a good idea to let them know that you're looking for developers with whom you can establish a long-term relationship and that this small project they're about to work on is a test. If they meet your expectations you will keep working with them, if they don't you won't be repeating business. I also make sure to tell them that the code needs to be thoroughly documented. It helps the other developers who have to work with their code and it could help you get an idea of what's going on under the hood. In summary, I think technical co-founders are over-rated. I see no reason to give up equity for something that can be easily contracted out. Ok, finding good contractors isn't "easy". It takes a lot of time -- it's taken me 9 months to find 2 solid ones. But the ones I've found can reliably get the job done, on time, within budget, guaranteed. I own 100% of my company.