During his early years at Ernst & Young’s insurance practice group in Johannesburg, Ernest North had no inkling that his future co-founders for the insurtech firm he would later establish would come from the same consulting firm — and even the same practice group. Yet, that’s precisely what happened. Together with Sumarie Greybe and Alex Thomson, both former colleagues from the same practice group, North is set on revolutionizing the South African insurance industry through Artificial Intelligence (AI) and automation. This is not just a reality for North but is becoming a prevalent trend among many startup co-founders across Africa.
The choice to partner with former colleagues often stems from a desire to reduce the risks associated with working with unfamiliar individuals. “This approach makes the journey of building a new business much more enjoyable,” Sumarie Greybe says.
“The alignment of goals and the foundation of respect and trust between the other founders of Naked and me are crucial to our business’s success,” Greybe adds.
| Former Companies Where Co-founders Met | Meeting Co-founders | Startup Founded | Country of Operation |
|---|---|---|---|
| Cellulant | i) Tatenda Furusa ii) Oluwasanmi Akinmusire | Imalipay | Nigeria |
| Panacea Mobile | i) Richard Nischk ii) Rhett Trickett | CueDesk | South Africa |
| MaxAB | i) Mohamed Maged ii) Moaz El-Megharbel | Mtor | Egypt |
| Opay | i) Ridwan Olalere ii) Rian Cochran | LemFi | Nigeria |
| Kopo Kopo | i) Steve Biko ii) Sebastian Kilimo | Zanifu | Kenya |
| Uber Egypt | i) Erik Gordon ii) Sherine Kabesh | Flash | Egypt |
| Safeboda | i) Kaoru Kaganoi ii) Zachary John-Pillow Petroni | Peach Cars | Kenya |
| Robusta Studio | i) Omar Alfar ii) Ahmed El Assy | Gameball | Egypt |
| Breadcrumbs Digital Studio | i) Yasser AbdelGawad ii) Sherief El-Feky | Yodawy | Egypt |
| Strategy& | i) Yasser AbdelGawad ii) Karim Khashaba | Yodawy | Egypt |
| Jumia | i) Tunde Kehinde ii) Ercin Eksin | Lidya | Nigeria |
| Millenium Integrated Limited | i) Lekan Omotosho ii) Seye Bandele | PaidHR | Nigeria |
| Ernst & Young (Johannesburg) | i) Ernest North ii) Sumarie Greybe iii) Alex Thomson | Naked Insurance | South Africa |
| Mobility SN | i) Iban Olçomendy ii) Gabriel Delerue | Fleeti | Senegal |
| Fixit45 | i) Sodeeq Elusoj ii) Abdulazeez Ogunjobi | Scandium Systems | Nigeria |
| Eazypapers Technologies | i) Sanmi Olukanm ii) Benjamen Oladokun | Shekel Mobility | Nigeria |
| CARS45 | i) Etop Ikpe ii) Iyamu Mohammed | Autochek Africa | Nigeria |
‘Acquiring’ Technical Co-Founders
Another common approach among African founders is to bring on technical co-founders — individuals with the essential skills needed to build and grow a technology-focused company. These technical experts often leave once their equity vesting schedules* (typically four years) are completed. A notable example is Natalie Cuthbert of South Africa, who co-founded Stitch, a pan-African financial services infrastructure startup, before moving on to another venture after two years.
Technical co-founders are not only valuable for their expertise but are sometimes a key requirement for external investors. “Early-stage investors have limited evidence of your potential success, so they look for people who can develop and iterate on your product. Relying on a development shop is more expensive and time-consuming,” explains Micheal Seibel, Managing Director and Group Partner at YC.
“Tech investors generally prefer to avoid companies that outsource development, except in rare cases where the companies are experiencing explosive growth,” Seibel adds.
The Bottom Line
For African founders, partnering with former colleagues or acquiring technical co-founders are two effective strategies for building successful startups. Collaborating with former co-workers minimizes the risks of working with unfamiliar individuals and fosters a collaborative environment built on shared goals and trust. On the other hand, bringing in technical co-founders with the right skills ensures that the company can build and iterate on its technology efficiently, which is often a requirement for attracting investors. Both approaches highlight a pragmatic and strategic approach to overcoming common startup challenges and driving business success.
* Equity vesting schedules are agreements that determine how and when individuals can acquire ownership shares in a company. They are typically used to retain key employees, align interests, and protect investors. Common types of vesting schedules include time-based, milestone-based, and performance-based. The specific terms of vesting schedules can vary widely depending on various factors.
