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Comparison Guide

Fractional CTO vs Development Agency

Two different solutions for two different problems. Here's how to know which one—or both—your startup needs.

The Short Answer

Development agencies build software. They take your requirements and deliver code.

Fractional CTOs provide technical leadership. They define what should be built, how, and why.

The best setup? Many successful startups use both: a fractional CTO to make strategic decisions and oversee quality, with an agency handling development execution.

Key Differences

FactorFractional CTODevelopment Agency
Primary RoleStrategic leadership & decisionsSoftware development & delivery
AccountabilityLong-term technical successDelivering agreed scope
Strategic InputHigh—shapes directionLimited—executes your vision
Knowledge RetentionStays with your companyStays with the agency
Typical Cost£4k-£15k/month ongoing£50k-£200k+ per project
Team BuildingHelps hire your own teamUses their own developers
Investor MeetingsAttends as your CTONot typically involved
Code OwnershipYou own everythingCheck contract carefully

When to Choose Each

Choose a Fractional CTO When:

  • •You need help deciding what to build
  • •You're preparing for investor due diligence
  • •You want to build your own engineering team
  • •You need someone in investor meetings
  • •You're unsure if your current tech approach is right

Choose an Agency When:

  • •You know exactly what you want built
  • •You need development capacity fast
  • •You have a fixed budget and scope
  • •You don't want to manage individual developers
  • •The project has a clear end date

The Best of Both Worlds

Many of our clients use a fractional CTO alongside an agency or contractors. Here's why this works:

  • The fractional CTO: Defines architecture, sets standards, reviews work, attends investor meetings
  • The agency: Executes development, provides developer capacity, delivers features

This ensures you get quality oversight without paying for a full-time CTO, while still having the development horsepower to ship quickly.

Warning Signs You Chose Wrong

You hired an agency but needed a CTO if:

  • • They built what you asked for, but it's not what you needed
  • • Investors keep asking technical questions you can't answer
  • • You're not sure if the code quality is good
  • • The project keeps expanding but you don't know why
  • • You can't evaluate if their estimates are reasonable

You hired a fractional CTO but needed an agency if:

  • • You have great plans but nothing's getting built
  • • Your roadmap is clear but you lack developers
  • • You're spending CTO budget on execution work
  • • You need a complete product, not just strategy
  • • You have a fixed deadline that requires more hands

Not Sure What You Need?

Book a free call. We'll help you figure out whether you need a fractional CTO, an agency, both, or neither.

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