CTO on Demand: Ultimate Guide to Hiring a Virtual CTO

Are you a founder or serial entrepreneur looking to bring a virtual chief technology officer (CTO) on board your startup? If so, you’ve come to the right place.

In this article, we’ll cover everything you need to know about hiring a CTO, including:

• What exactly does a CTO do
• When you should think about hiring one
• The major benefits CTOs offer startups
• Common challenges founders face in the hiring process
• Different options for working with a technical director
• Typical CTO salary and compensation ranges
• Steps for finding and selecting the right CTO for your needs

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What Is The Role Of A Chief Technical Officer?

The CTO is a C-level executive who oversees the company’s technical operations.

They guide other team members, determine which technology to adopt, and map the workflow for all development and maintenance activities.

Zippia research suggests that the US alone has 26,345 CTOs. A number that’s expected to grow in the future. It shows just how in-demand virtual CTO services are. If you’re looking to hire one, you’re not alone, so moving quickly and being clear about what you need really matters.

Types of Chief Technical Officers

They are categorized based on the types of organizations and their roles. The three types of CTOs are:

• Early-stage technical directors
• Technical directors at startups.
• Late-stage, or large (unicorn) startup technical director.

Types of CTO	Description
Early-stage technical director	These technical executives work in early-stage startups, contribute towards idea validation, and double as the lead technology manager and senior developer. They’re solely responsible for choosing stacks for the technical team and often have full-service software development expertise. The skills required to function here are: Backend development, user interface integration, Infrastructure design, DevOps (Check out our DevOps services to learn more about our DevOps practices and tools.), Server management, HR expertise.
Technical directors at a startup	These are technical executives responsible for all development and maintenance practices in mid-stage startups. A startup CTO makes decisions on which technology to adopt or churn out and identifies talents to onboard. Skills required at this level are: Team leadership, Apt knowledge of the product, SaaS experience (for startups in the niche), Backend development expertise, User interface integration.
Late-stage startup and large (unicorn) startup technical directors	This is the most senior tech executive in large enterprises, usually large-scale startups, and unicorns. These CTOs are responsible for improving business profitability, creating a long-term technical strategy, and onboarding tech leads and senior developers. Skills required to function here are: Product management Experience maintaining SaaS infrastructure (for SaaS-centric startups) Ability to set goals and determine corporate vision Team leadership Coaching skills.

Difference Between a Technical Co-Founder and a CTO

A popular misconception is that CTOs are co-founders.

While in some cases, this is not always the case. In fact, for most unicorns, CTOs are employed like other team members.

Let’s break down how both titles differ.

Technical Co-founder

CTO

Technical co-founders or technical partners are developers hired by startup founders for that role. Learn how to find a technical co-founder. Technical co-founders have a flexible contract that allows startups to delay payment until the company goes public, raises funds, or becomes profitable. Responsibilities of a technical cofounder entail: managing and expanding the engineering team, having a technology strategy, managing MVP software development, drawing up and choosing the tech stack.

This is an executive-level staff of the company that’s in charge of all technical processes it embarks on. Generally, the CTO title is used by tech-centric companies creating software products. The responsibilities of a CTO include: team management, defining the technical stack within an organization, overseeing technical operations, tracking performance KPIs for the technical team.

Now that you know what CTO stands for, when exactly do you need one?

Let’s discuss this.

Best Time To Hire A Virtual CTO

Before you search for a virtual CTO for a startup online or via your connection, you should first ascertain that you need one.

Here are things to consider:

• You have a large team and need a tech executive with in-depth knowledge of software infrastructure management and tech trends in your niche.
• You’re at a point where your startup is stable and generates revenue, but you need extra effort to scale your offerings and reach certain business objectives.
• You lack technical knowledge, which hinders your ability to monitor and manage your dedicated development team.

Benefits Of Hiring A Virtual CTO

Hiring a CTO helps your startup have a streamlined development and maintenance strategy, work with emerging technologies, and build a tech foundation that can scale as you grow.

Beyond that, here are a few other benefits of working with a virtual CTO:

1. Development of High-Quality Tech Products

Hiring a seasoned CTO helps you benefit from their years of experience to create high-quality, scalable, and resilient technological solutions.

CTOs understand the intricacies, code syntax, software infrastructure, and features required to improve the quality of your product.

2. Time Savings and More Flexibility

Virtual CTOs help save time as they provide quick solutions to technical pain points.

A virtual CTO helps you make faster tech decisions. They’ve seen similar problems before, so they don’t waste time figuring things out. Instead, they offer quick, practical solutions. This keeps your project moving forward. You don’t have to pause everything to solve technical issues. That’s a big time-saver for growing startups.

Also, you can hire a CTO-on-demand for a specified timeframe, as opposed to in-house specialists that you’ll have to hire even during unproductive periods.

3. Provides Objective Opinions

CTOs can give different and sometimes better insight into a technical or business model.

Since they’re professionals who usually have years of experience working on multitudes of architectures, the opinions they offer can help you edge out competitors.

4. Getting Started Without Training

Investopedia reports that most CTOs have over 15 years of experience, which makes them accustomed to all development and maintenance processes.

As such, they can start adding value to your project and team without prior training.

5. Deployment of New Technologies

Most CTOs have experience in deploying new technologies and avoid regular unplanned downtimes via incremental testing.

They grasp multiple programming languages and can easily suggest digital transformation initiatives that guarantee improved speed and security.

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Challenges Of Hiring A CTO

As with any hiring plan, there are always challenges to surmount. For CTOs, startups’ common hiring challenges are:

• High salary expectations from potential candidates
• Lack of enthusiasm for working in a startup
• The small talent pool
• Cultural differences
• Trust issues

1. High Salaries

According to TechCrunch, CTOs earn more than CEOs for early-stage startups.

This exorbitant fee is a significant challenge for startups as hiring an experienced CTO requires a huge budget.

For example, hiring an experienced chief technical officer in the US may cost as much as $250k/year.

This is beyond the budget of many startups, even some investment-backed enterprises.

2. Lack of Interest in Startups

A survey by Zippia shows that less than 17% of CTOs work for small-scale startups. Coincidentally, over 99% of US startups are categorized as small businesses.

These two statistics show that most CTOs have a preference for working with fully established enterprises over startups.

Some reasons for this are due to the prospect of job security, better pay, and a more robust development and maintenance budget.

3. Lack of Experienced Talent

Forbes estimates that the current tech talent shortage will reach 4.3 million by 2030. This shortage is due to the high requirements needed to become a CTO.

It’s one that requires top-notch expertise in a relevant tech stack, an understanding of software architectures, and the ability to lead and direct the technical team.

This is a significant challenge for those finding a virtual CTO for a startup company, as there are few options to choose from.

Consequently, companies are beginning to look toward onboarding talent from abroad. This is where digital onboarding solutions come into play to streamline and speed up the process.

4. Cultural Differences

Cultural differences usually exist between in-house teams and outsourced CTO-on-demand from software development agencies.

This is particularly evident in cooperation between startups in the West and offshore virtual CTOs from India and Africa.

These differences may lead to non-verbal communication barriers, workplace conflicts, and an inability for the CTO to mentor and direct other team members.

5. Trust Issues

Due to the sensitivity of the duties of CTOs, they tend to clash regularly with startup founders due to trust issues. A major mistake from the chief technical officer may result in a data breach or downtime.

Thus, founders find it challenging to place absolute trust in a CTO, particularly new hires.

Virtual CTO Hiring Options

There are many hiring models to explore. Common virtual CTO hiring models available are

• In-house hiring
• Technical-director-as-a-service
• Part-time consultant
• Outsourcing

The most suitable model for you depends on your business goals, company type, budget, etc.

1. In-House Hiring

This hiring model entails onboarding a chief technical officer through traditional means as a full-time CTO, receiving enumeration from the startup, and reporting directly to the CEO.

The CTO here is an employee of the startup.

This model is more suitable for large enterprises and startups with unlimited budgets that want to keep core management activities in-house.

Pros	Cons
A high likelihood that sensitive information will be kept a secret. A better understanding of the team’s objectives, goals, and culture. One-on-one mentorship with other technical team members to improve their skill set.	The cost of maintaining and onboarding an internal CTO is expensive. This is due to the cost of hiring, purchasing equipment, extra remunerations, and an abundance of hidden costs. It takes time to identify and onboard a CTO willing to work with a startup.

Another option to consider is freelance CTOs, more technically called technical-director-as-a-service. Let’s dig in.

Another option to consider is freelance virtual CTOs, also known as technical directors as a service. Let’s dig in.

2. Freelance or CTO-as-a-Service

Freelance CTOs are independent professionals who manage a startup on a per-contract basis.

They’re individuals open to working with any organization for a stipulated time frame and projects.

This hiring model is suitable for startups with uncertain financial resources who require a flexible CTO for a specific project.

Pros	Cons
They’re flexible as startups can promptly terminate their contract without breaking employment laws. They have experience working across multiple niches and can offer insight into a startup’s development and maintenance practices.	Technical Director as a Service can abandon your project at a moment’s notice. There’s a high risk of leaking sensitive information to a competitor. Possibility of time zone and cultural barriers.

Another important option we’ll consider is outsourcing to a custom software development company.

3. Outsourcing

This process entails hiring a virtual CTO from a software vendor to manage internal technical employees, determine the roadmap for development processes, advise the CEO during decision-making processes, and coach team members.

This hiring model is best for companies that want a cost-effective yet flexible means of hiring a VCTO without the cons of freelance-as-a-service.

Pros

Cons

Outsourcing from a reputable software development agency allows startups to select from a large pool of talent. Many software development agencies accept flexible payment options, It’s a more cost-effective solution than other alternatives. Most agencies vet the skill set of their talents. Thus, you’re guaranteed top-notch expertise. Outsourced CTOs have experience working on multiple high-value projects. Thus, they can offer timely insights for your startup.

Time-zone barrier between agencies and startups. Cultural differences are usually common between Western startups and agencies in Africa and India.

4. Part-Time Consultant

Part-time consultant CTOs are professional tech executives working remotely or on-site for a stipulated time, usually for less than a full-time employee, to achieve a specified project.

Unlike other hiring options, where a CTO must be regularly available, this expert can only be accessed during specified hours.

This hiring model is ideal for startups using low-code or no-code tools and those using minimal technology.

Pros	Cons
They’re cost-effective for low-tech organizations. Hiring a part-time consultant CTO allows you to cut costs significantly. They have extensive experience working in diverse niches.	They’re unavailable during emergencies. E.g., downtimes. They may be full-time employees of a competitor, leaking sensitive business decisions to your rivals. They’re usually unavailable and promptly correct mistakes from the tech team.

Considering the pros and cons outlined in the four options above, there is no doubt that outsourcing from a reputable software development agency offers the best cost-quality ratio.

How Much Does It Cost To Hire a CTO?

The cost of virtual CTO services in 2025 ranges between $ 60,000 and $ 250,000. The exact figure it’ll cost you is determined by:

• The technical skills of the professional
• Location of the CTO
• The CTO’s level of experience
• The type of cooperation model

Let’s break down what each factor entails and how it affects cost.

1. Cost by Location

The location of a CTO is a huge factor to consider in cost.

CTOs from low- and middle-income countries tend to be more affordable than those from high-income nations, such as the UK, the US, and Canada.

This cost disparity exists even where the professionals have the same skill set.

Here’s how CTOs in different countries stack against each other.

For each figure, we’ll assume you’re hiring a highly-skilled and experienced tech executive:

County	Cost, $ (Hourly)
USA	146
UK	125
Canada	130
Australia	120
Western Europe	110
Ukraine	70

 

 

Ukraine is often the best choice for many startups in the West, as they have similar cultural practices and minimal time-zone differences.

Their developers also have a good grasp of the latest technologies.

Ukrainian-based software development agencies also offer a broad range of services other than CTO-on-demand and core coding process.

Another cost-defining factor to consider is the developers’ level of experience.

2. Cost by Experience Level

The fee paid for a CTO position varies according to the expert’s experience.

Here’s how costs stack up per experience:

Level	Years of technical experience	Cost (Annual)
Senior CTO	10+	$143k-$200k
Mid-level CTO	4-9	$120k-$142k
Junior CTO	1-4	$110k-$119k

 

 

The right candidate for your startup depends on the complexity of your product development and the number of technical team members.

Startups with highly complex projects and a robust team of 50+ developers require a senior CTO.

A junior CTO and a team of less than ten technical experts are ideal for minimalist projects.

Another important cost-defining factor to consider is the type of cooperation model.

3. Cost by Cooperation Model

The cooperation model of choice is another cost-defining factor to consider.

When it comes to hiring a CTO, the most prominent cooperation models are in-house, freelance, outsourcing, and part-time consulting.

Here’s a table depicting the cost implication of each model:

Cooperation Model	Cost, $ (Hourly)
In-house	147
Freelance	90
Outsourcing	50
Part-time consulting	160

How To Hire A Chief Technology Officer For Your Startup

To hire the right person with the ideal technical expertise for your startup, it’s best to first:

• Search for a CTO for a startup online and offline
• Outline requirements by stakeholders
• Examine case studies and portfolios,
• Identify control points,
• Sign the NDA.

Where to Find a CTO

The most popular way to search for a CTO for a startup is online.

There’s also an offline method, which requires tapping into your network of talents for a referral.

Here’s a list of common platforms to find a CTO:

Where to Find	Details
Freelance platforms	You can fine-tune your search to find CTOs on common freelance sites like Fiverr, Upwork, Toptal, etc.
LinkedIn	LinkedIn is the largest professional network on the internet. What’s more? It lets you streamline your search based on experience, location, tech stack, etc.
Online meetings	Online meetings don’t just provide you with an avenue to discuss with talents; you can also network with other professionals and find one that suits your corporate needs.
Your network	It’s still the most trusted traditional way to hire talent. Discuss with business partners, subordinates, and others within your network about your needs.
Business listing	Business listings like Clutch can provide you with a list of companies offering a specifically needed service. You may streamline your search to software development agencies in the desired country. Check out the best countries to outsource software development for top choices.

Once you’ve found a suitable CTO to hire, the next step is to begin the vetting and interview process.

How to Choose the Best CTO

Choosing an ideal CTO can be very challenging. You’ll need to vet their claims and check their technical expertise and soft skills to know if they’ll deliver as expected.

Here are the steps to choosing an ideal CTO.

Step 1. Set Clear Requirements

Research the ideal qualities your company needs in a CTO and use them to set job requirements.

Determine what the right candidate will look like.

What soft skills do they possess? What experience should they have?

Consider including the following in your job description:

• A CTO with software engineering expertise who has embarked on multiple projects.
• Someone with experience surmounting the challenge you aim to solve. For example, if you’re trying to scale your product usage, then a CTO with experience doing that helps.
• Someone with experience in multiple technologies, both front-end and back-end tech stacks.
• Opt for a CTO with great programming skills.

Once you’ve set your requirements, check out the portfolios of the professionals to vet their expertise.

Step 2. Examine Case Studies and Portfolios

Case studies are a record of work done on a project.

They provide details on the steps they took to achieve a deliverable, the methodologies involved, and the timeframe for completion.

Portfolios, on the other hand, provide you access to past projects they’ve handled, so you can independently vet the solution.

The steps taken to develop a product are not described in the portfolio.

This step is essential when outsourcing from a software development agency or hiring a freelancer.

Step 3. Identify Control Points

Control points are specific areas you’ve highlighted as the ideal criteria that a prospective CTO should meet and agree to before being hired.

Common control points to consider are:

• Location
• Technical background
• Rate
• Business acumen

Once you’ve verified your choice, start formalizing your partnership.

For seamless collaboration, knowing what to expect in an app development partnership is essential.

Step 4. Sign NDA

Once you’ve identified a suitable CTO, sign an NDA to prevent them from leaking sensitive information to competitors.

Ready To Hire A Virtual CTO?

Hiring a virtual Chief Technology Officer is vital for providing strategic direction to your engineering teams. They instill technical best practices, stay abreast of technology trends, and elevate product quality to new heights.

If you need technical leadership or supplemental engineering support, our team can help. We combine Silicon Valley expertise with top Eastern European talent to build robust technology solutions for startups.

Contact us today or check out our Clutch to discuss how we can help you build the next big thing.

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