Fractional CTO or a technical co-founder?
A technical co-founder builds the product and is paid in equity, permanently. A fractional CTO sets the architecture, hires the first engineers and faces diligence, paid in cash for the days used: £6,133 to £10,733 a month at two days a week. If there is no product and nobody to build it, the co-founder; if there is somebody to build, the fractional seat usually costs far less.
Below is what each one actually owns, what they cost on the same basis, how each one fails, and when to pick the other one.
| A fractional CTO | A technical co-founder | |
|---|---|---|
| Who owns the outcome | The architecture decisions that are expensive to reverse later | Everything a fractional CTO owns, plus writing the code day after day |
| Commitment | One to three days a week, flexing with the work, no end date assumed | Permanent, for the life of the company |
| How it is priced | £800 to £1,400 a day | Equity, usually a double figure percentage, which is the most expensive currency a company has and the only one it cannot get back. |
| Typical monthly cost | £6,133 to £10,733 a month at two days a week | No like-for-like monthly figure is published here; see how it is priced |
| How it fails | Asking two days a week to also ship the product, which ends with a roadmap nobody has time to execute. | Giving away ten or twenty per cent of a company to fill a job that a booked seat would have done for a day rate, which is the single most expensive hiring mistake at this stage. |
| Pick it when | There are engineers, or an agency, who need technical direction | There is no product yet and somebody has to build it, not direct it |
What a technical co-founder actually is
A co-founder who owns the technology, paid in equity rather than cash, and in it for the life of the company.
What each one owns
| A fractional CTO | A technical co-founder |
|---|---|
| The architecture decisions that are expensive to reverse later | Everything a fractional CTO owns, plus writing the code day after day |
| Hiring the first engineers, and knowing which ones to hire | Carrying the product when there is nobody else to carry it |
| What gets built, in what order, against a commercial plan | A permanent stake in whether the company works |
| Being the technical answer in a fundraise or a diligence room | Being available at midnight, which a booked seat is not |
What neither of them does
Neither is an engineering team. A senior technology seat decides what to build and who builds it, and if there is nobody to do the building, the decisions have nowhere to land.
How each one fails
The fractional CTO: Asking two days a week to also ship the product, which ends with a roadmap nobody has time to execute.
A technical co-founder: Giving away ten or twenty per cent of a company to fill a job that a booked seat would have done for a day rate, which is the single most expensive hiring mistake at this stage.
What they cost, on the same basis
A fractional CTO charges £800 to £1,400 a day, which is £6,133 to £10,733 a month at two days a week. Equity, usually a double figure percentage, which is the most expensive currency a company has and the only one it cannot get back. The monthly and annual arithmetic for the fractional side, against a full-time equivalent, is on the cost page for this seat.
Pick a technical co-founder when
- There is no product yet and somebody has to build it, not direct it
- You are pre revenue and equity is genuinely the only currency available
- You want somebody whose outcome is the company's outcome, permanently
We would rather say that plainly than win an engagement that was the wrong shape. Nobody pays us to list on the bench, so there is nothing in it for us either way.
When you want both
Often the honest answer. A fractional CTO sets the architecture and hires properly, and the person they hire grows into the permanent seat.
Common questions
Should I hire a fractional CTO or a technical co-founder?
A technical co-founder builds the product and is paid in equity, permanently. A fractional CTO sets the architecture, hires the first engineers and faces diligence, paid in cash for the days used: £6,133 to £10,733 a month at two days a week. If there is no product and nobody to build it, the co-founder; if there is somebody to build, the fractional seat usually costs far less.
Is a fractional CTO cheaper than a technical co-founder?
On a like-for-like basis it usually is, because you buy the days you need rather than all of them. A fractional CTO runs £800 to £1,400 a day, most often one to three days a week. Equity, usually a double figure percentage, which is the most expensive currency a company has and the only one it cannot get back. But cheaper is the wrong question if the work genuinely needs the other one.
When is a technical co-founder the better choice than a fractional CTO?
There is no product yet and somebody has to build it, not direct it. You are pre revenue and equity is genuinely the only currency available. You want somebody whose outcome is the company's outcome, permanently.
Can I use a fractional CTO and a technical co-founder at the same time?
Often the honest answer. A fractional CTO sets the architecture and hires properly, and the person they hire grows into the permanent seat.