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What is fair a % of equity for a first hire CTO after product is built and live?

Again, what is a fair percentage of equity to give up for a first hire CTO? I have fully built the MVP so from idea, business plan, financial model, marketing plan, design, fully functional MVP & acquiring customers.

I have bootstrapped& funded everything to date.

I want to focus on scaling the business side of things while the CTO focuses on scaling the tech & hiring engineers/developers.


Any thoughts and suggestions will be appreciated!:)

3 Replies

Ken Lloyd
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Ken Lloyd Entrepreneur
Strategic Visionary | Mobile Security SME | Executive
It sounds like you need a VP of Development and not a CTO. A CTO will bring a balance of business and technical skill sets;
Jennifer Ernst
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Jennifer Ernst Entrepreneur • Advisor
Marketing | Business Development for early-stage, high-growth tech
I second Ken's comment. What you're describing is VP of Engineering or Product Development.

1. Are you planning on paying him/her?
2. If yes, how close to market rate?

Review similar listings on Angel.co to get an idea of the balance. In a funded start-up, 1% or thereabouts would be the norm. If the answer to #1 is no, then it goes up quite a bit and you have to ask are you "hiring" someone or bringing in a co-founder.


Pierpaolo Porta
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Pierpaolo Porta Entrepreneur
Entrepreneur at Bio Scatter Technologies
It seems to me that a CTO have designed and made fully functional the MVP. If something technical goes wrong, a glitch in the code or some issue in the hardware, the CTO will know how to react promptly to the customers' issues.
The CTO would have built the MVP keeping in mind the business, financial and marketing plan.
As said before by other commentators, A VP of engineering seems the most suitable figure to attract into the business. Fair percentage of equity? It is quite difficult to define "a priori". It depends on what the person will bring into the business, network, expertise etc. It depends on how many share-holders are already in the company structure. I think that the fair percentage should come out from the interaction of all the subjects owning the company
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