How long should we work with a virtual CTO for?
A virtual CTO working part-time can be especially useful in the first year dealing with early stage startup challenges, as well as outside of a 2 to 5-year timeframe. Within that time frame, it’s more common for companies to use a traditional full-time CTO.
Some companies have virtual CTOs working full-time. This gives the company flexibility to take on technology and strategy challenges as the market changes. A new piece of software, scaling infrastructure, a team to grow -- these are all aspects a virtual CTO can work on, now and in the future.
Got more questions for 555 vCTO that aren’t answered above? Let us know!
How can a virtual CTO support our bottom line?
More than 50% of CEOs have noted that “digital interventions have led to improved bottom lines”. Being able to identify and adopt emerging technologies keeps the business efficient and modern, directly supporting business growth.
Depending on the stage of the company, the value of a virtual CTO making the right recommendations at the right time could be worth many millions of dollars. 555 vCTO has helped prevent losses of that scale - and as importantly, helped companies to take advantage of opportunities worth even more than that.
Frequently Asked Questions (FAQ) about 555 vCTO
Part-time CTO, full-time and long-term value. That’s the simple idea behind 555 vCTO. A part-time virtual CTO provides timely strategy and technology expertise. Start up, scale-up and disrupt the competition.
Many seasoned technology industry founders and executives will already be familiar with this arrangement. That said, many companies have questions about the details about a virtual CTO’s areas of expertise. How do they work, exactly?
Here are some of the most common questions we get about the virtual CTO role - and our answers:
What is the function of a CTO?
A Chief Technology Officer (CTO) leads a company’s technology or development departments and operations to achieve the businesses’ goals. They look at what technology the company uses, and potential technologies they could adopt in the future.The CTO needs to be able to act as a translator between the technical and non-technical people of the organization. They collaborate with the executive team to align with marketing, sales, operations and other departments in the company.
Simply put: you need someone who has a brain for technology and for leadership. The person in this key role needs to be able to speak to both sides of the business.
What’s the difference between a virtual CTO, fractional CTO or part-time CTO?
It’s virtually the same thing, with one key difference. A virtual CTO is a fractional CTO or part-time CTO, who can work remotely. 555 vCTO, for instance, works with innovative companies in the USA, Canada and around the world.
Is a virtual CTO a lower-cost option than a full-time CTO?
Yes, a virtual CTO working part-time will often be less expensive for companies that need to carefully watch their budget constraints or don’t have the requirements for full time position. That doesn’t mean a virtual CTO is cheap - but that this option can provide exceptional value, both for startups and companies that are scaling up.
Can having a virtual CTO be an advantage for companies approaching investors?
Absolutely. A virtual CTO can add value at the critical point when a company begins approaching seed funders, angel investors or venture capitalists. Even before a company has fully built out its leadership bench, presenting an experienced fractional CTO instantly shows that this is a company that can execute its vision, putting funding to good use.
How does someone become a virtual CTO?
The ideal person for a virtual CTO role has a great deal of experience in working on a range of technology strategy challenges across different industries. Someone who has a great deal of experience and technical skill in coding or engineering won’t necessarily be a great CTO (virtual or not). This job requires someone who has “seen it all” and is fluent in the language of business - not just in the language of bits and bytes. Technical knowledge is essential, but so is the wisdom that comes from years of experience as a leader and consultant.
Is “virtual CTO” a new concept or is this something a lot of companies are using?
Actually, virtual CTOs have been around since the 1990s -- and some believe the first fractional or part-time CTO was Tony Karrer, who filled a part-time job CTO for the eHarmony dating site, which famously landed $110 million in financing. As Karrer put it, “most startups don’t need a full-time CTO to handle strategy.” That’s true.
In the big picture, what can a virtual CTO or fractional CTO really do for my company?
555 vCTO helps companies to align strategy and technology in pursuit of business goals. From the early stage startup phase through growth and scaling up, a virtual CTO can help the leadership team understand how to build and adapt the company.
What are the pros and cons of hiring a virtual CTO?
A big pro for hiring a virtual CTO: companies can get the expertise they need, when they need it. A part-time virtual CTO can bring a wealth of experience and wisdom to any business situation that enables rapid response. The virtual CTO offers a versatile skill set that gives companies flexibility to address key challenges in building and scaling the business.
The lower cost of hiring a virtual CTO part time or only at the stage they’re needed can also be a big advantage for startups that need to carefully manage their runway.
What’s the con? For companies that value stability in the leadership team above all else, it may make more sense to hire a full-time CTO on a long-term contract, despite the higher costs associated with that. However, in most successful companies operating today, the priority is moving quickly and with flexibility to meet changing business needs. A lot will depend on the complexity of the company’s business model, organization size, skillset of the team, etc.
When is it a good idea to have a virtual CTO versus a full-time CTO?
You’ve seen some founders or CEOs who are great at building a startup, but other leaders are the kind you want when it’s time to scale up. You can see a similar type of situation with different levels of CTO strategy.
In the early stage, a CTO might need to build the business model canvas, assess technical feasibility, design a basic system architecture, help create a minimum viable product, etc. In the market validation stage, it’s more about features validation, team planning or designing a product roadmap. In the growth phase, you’re scaling infrastructure, ensuring security and compliance, etc.
A CTO can support a business at all stages -- even before launch. As the company grows, avoid siloing your growing teams by building effective information integration with other departments.
What aspects of my business can a virtual CTO help with?
At the most basic level, a CTO supports the product side of a company. But their impact stretches far beyond that. By having oversight of the technology, business and marketing strategies, a virtual CTO can ensure that the technology supports every other aspect of the business’s objectives.
What stage should my company be at when we hire a virtual CTO?
A virtual CTO can help at all stages of the business, but understanding what stage you are at first may be helpful.
Do you have a strong idea but need to evaluate possible technologies? Or do you have the product, but need the right team planning to kick things off? A virtual CTO can help with this for companies of all sizes. Virtual CTO can also help the current CTO with special projects.
How will our teams work with a virtual CTO?
A virtual CTO is able to consult, advise and collaborate with other members of the leadership team, such as the heads of marketing, sales, finance, operations, etc. The business objectives of each part of the company will determine the need for strategy that the CTO can help devise. 555 vCTO in particular has decades of experience working with leaders from every department. They can actually provide a bridge between different departments as technology is built out in pursuit of business goals.