Advice sought: structuring sml tech start-up(Equity/funding)
Advice sought: structuring sml tech start-up(Equity/funding)
Author
Discussion

GarethA

Original Poster:

179 posts

181 months

Wednesday 16th January 2019
quotequote all
Afternoon

Would anyone on here have any personal experience of, or know someone who might be up for a coffee, on the subject of the structuring and funding a small tech/software idea? (or any good looks to resources on same?)

I am looking to understand smart ways to (i) keep a CTO figure incentivised and aligned with the business while ideally retaining equity and (ii) any wise words on funding the idea again from the perspective of minimum equity dilution.

Would be great to connect with anyone who has been through the same hoops

Context -
Educational software area. Estimated 6 mths to deliver w CTO and 1/2 developers. Max 100k to build.Likely lot less.

I have: identified opportunity; formed deep relationship w first potential customer; scoped out commercial requirements in collaboration w same; see myself as responsible for all sales etc. - confident can deliver on this. BUT I am not technical

Have identified CTO figure to oversee build. May be interested in speccing own time on project.

Many thanks - free new Toyota Supra for helpful advice. Well, maybe just profound thanks instead / coffee!

zippy3x

1,384 posts

298 months

Wednesday 16th January 2019
quotequote all
Two questions,

Why do you need a CTO and what's he/she going to do all day

Who has estimated the 6 months?

GarethA

Original Poster:

179 posts

181 months

Wednesday 16th January 2019
quotequote all
CTO - well I needed someone to co-ordinate the technical side

6 months - they did, following meetings w customer

zippy3x

1,384 posts

298 months

Wednesday 16th January 2019
quotequote all
CTO, seems like a waste of money to me. Any competent senior level developer with a track record of delivery, should be able to do handle any technical issues that arise in a project so small.

Estimating, does the customer that estimated 6 months have a background in software development? Are they estimating what they want to pay? You at the very least need to get that verified by someone who could do the job

GarethA

Original Poster:

179 posts

181 months

Wednesday 16th January 2019
quotequote all
zippy3x said:
CTO, seems like a waste of money to me. Any competent senior level developer with a track record of delivery, should be able to do handle any technical issues that arise in a project so small.

Estimating, does the customer that estimated 6 months have a background in software development? Are they estimating what they want to pay? You at the very least need to get that verified by someone who could do the job
zippy3x - thanks. well this is just exposing my lack of knowledge of tech competency heirarchy. I just sought an individual who could help scope and do the job and speak english w the customer / prospective customers and I thought that was a CTO level person. They do come along w a developer. There's wiggle room to reshape the structure but I need to do that pronto