Rear Spoilers and CTOs: Why Your Startup Might Not Need One Just Yet
Back in the early 2000s, The Fast and the Furious sparked a street racing craze that led to a pop-culture obsession with souped-up cars. One feature that became almost synonymous with these modified vehicles was the oversized rear spoiler. While these spoilers looked cool and served some real technical purpose in high-performance cars (such as aiding airflow and providing downforce), they weren’t exactly essential for every car on the road—especially not for your everyday Toyota Camry.
The same applies to startups. When you're building your business from the ground up, it's crucial to differentiate between the "shiny" accessories that might look good and the core components that actually make your business run. And sometimes, that means reevaluating whether a Chief Technology Officer (CTO) is really necessary in the early stages of your startup.
Why a CTO Might Not Be the Right Fit (At Least Initially)
Let’s get one thing clear: we're not against CTOs. But for early-stage startups, hiring one might not make the most sense. Here are two main reasons why:
1. Skills Mismatch
CTOs typically focus on high-level strategy—linking technology decisions with broader business goals, setting the long-term vision, and aligning technical work with future objectives. This kind of strategic thinking is incredibly valuable in later-stage companies. However, when you're in the startup phase, what really matters is getting a product off the ground and achieving some level of product-market fit.
At this stage, execution is the priority. You need someone who is hands-on, who can take a project from ideation to completion, and who is comfortable making decisions quickly. A CTO, who is often more focused on strategy, isn’t the best person for this kind of fast-paced, results-oriented environment.
2. Lack of Involvement
By the time someone reaches the CTO role, it's likely been quite a while since they were actively coding. They may not be as familiar with the day-to-day challenges of maintaining a software product, implementing incremental updates, or dealing with bugs. This distance can lead to friction with the engineering team, who may struggle with taking direction from a leader who doesn’t fully understand the work they’re doing.
In an early-stage startup, where quick decision-making is critical, this lack of familiarity can lead to frustration and lower team morale. If the engineering team feels disconnected from leadership, it can create inefficiencies, delay project timelines, and result in higher turnover.
What’s the Alternative?
If a CTO isn’t the answer, then who should lead your technical efforts? From our experience, the best early-stage startups are led by a Head of Engineering, VP of Engineering, or Director of Engineering.
These roles are more focused on project execution and day-to-day management. A strong engineering leader knows how to manage a team, how to make the tough calls when it comes to scope and prioritization, and most importantly, they understand how to deliver results quickly and efficiently. These individuals typically have hands-on experience as engineers themselves, so they can empathize with the challenges their teams face and have the skills to guide them toward successful product delivery.
Rather than hiring a CTO who might be better suited for later stages of growth, you’re likely to get more value from someone who can directly influence the product’s development and lead by example.
When Should You Hire a CTO?
Just as there are situations where a rear spoiler is necessary (such as in street racing), there are also cases where a CTO is the right move. Here are a few scenarios where a CTO could be crucial:
Once You Scale Up: If your startup is doing well and bringing in over $20 million in revenue, it might be time to think about a CTO. At this stage, your company is no longer just in “build mode” and the long-term vision for the product becomes more important. A CTO can provide the necessary leadership to ensure the tech strategy aligns with your business goals as you scale.
Highly Regulated Industries: If your startup operates in an industry with complex regulatory requirements—such as healthcare, finance, or legal—a CTO with expertise in navigating these challenges can be invaluable. Industry-specific experience will help your team manage compliance issues more effectively and ensure you meet privacy and security standards.
The Bottom Line
While a CTO may seem like a must-have for any tech startup, for most early-stage companies, the role isn’t as essential as it may seem. Instead of focusing on titles, consider the specific needs of your startup. If your priority is execution and getting your product into the hands of users, you may be better off with a hands-on engineering leader.
Choose the right technical leadership based on the stage of your company, and remember: the right person for the job might not always be the one with the fanciest title.