Fractional CTO vs Full-Time CTO
Not every company needs a $400k executive. Learn when a fractional CTO makes sense, when to hire full-time, and how to make the right decision for your stage.
The Real Cost Question
A full-time CTO costs more than salary. Factor in benefits, equity, recruiting fees, and the months spent searching, and Year 1 costs often exceed $500,000. That is before considering the risk of a bad hire.
A fractional CTO provides senior technical leadership at $5,000-$20,000 per month with no equity dilution, no benefits overhead, and no multi-month search. You get experienced guidance immediately.
The right choice depends on your stage, needs, and runway. This page helps you think through that decision honestly.
Cost Comparison
Full-Time CTO
- Base Salary$250,000 - $350,000
- Benefits & Taxes$50,000 - $100,000
- Equity (1-5%)Significant dilution
- Recruiting Costs$50,000 - $100,000
Fractional CTO
- Monthly Retainer$5,000 - $20,000/mo
- Benefits & Taxes$0
- EquityNone required
- Recruiting Costs$0
Full-Time CTO vs Fractional CTO
| Factor | Full-Time CTO | Fractional CTO |
|---|---|---|
| Annual Cost | $250,000 - $400,000+ | $60,000 - $240,000 |
| Equity Requirement | Often 1-5% equity expected | No equity required |
| Time to Hire | 3-6 months typical | Days to weeks |
| Availability | Dedicated full-time | Part-time, as needed |
| Industry Experience | Deep in one domain | Broad across industries |
| Commitment Level | Long-term, invested in outcome | Professional engagement |
| Flexibility to Scale | Fixed cost regardless of need | Scale up or down as needed |
| Risk if Wrong Fit | Expensive and disruptive to change | Lower risk, easier to adjust |
When a Fractional CTO Makes Sense
For many growth-stage companies, fractional technical leadership is the smarter choice.
Limited Budget
When a $300k+ salary would consume too much runway, a fractional CTO gives you senior technical leadership at a fraction of the cost.
Growth Stage
Post-seed to Series A companies often need strategic guidance without full-time overhead. Scale engagement as funding grows.
Speed to Market
Hiring a full-time CTO takes 3-6 months. A fractional CTO can start within days, keeping your roadmap on track.
Diverse Technical Needs
Need expertise across AI, blockchain, and fintech? Fractional CTOs often bring broader experience from working with multiple companies.
When a Full-Time CTO Makes Sense
Fractional is not always the answer. A full-time CTO may be the right choice when:
- Technology Is Your Core Product: If your product is deep technical IP - novel algorithms, research-driven innovation, or proprietary technology - you may need someone thinking about it full-time.
- Building a Large Engineering Team: Growing from 5 to 50 engineers requires daily leadership, culture building, and hands-on management that demands full-time presence.
- Series B+ with Strong Runway: Later-stage companies with significant funding can afford and benefit from dedicated technical leadership fully invested in one outcome.
- Critical Technical Integrations: Complex enterprise integrations, regulatory requirements, or mission-critical systems may require someone available every hour of every day.
Decision Framework
Answer these questions to clarify which model fits your situation.
| Question | Fractional CTO | Full-Time CTO |
|---|---|---|
| What is your monthly budget for technical leadership? | Under $25,000/month | Over $30,000/month sustainable |
| How many hours per week do you need a CTO? | 10-30 hours/week | 40+ hours/week consistently |
| How complex is your current engineering team? | 0-15 engineers | 15+ engineers needing daily leadership |
| What is your company stage? | Pre-seed to Series A | Series B+ with product-market fit |
| How quickly do you need technical leadership? | Within weeks | Can wait 3-6 months for perfect fit |
How Hexmount Delivers Fractional CTO Services
When you work with Hexmount, you get more than a single consultant. You get access to our entire tiger team: specialists in AI, blockchain, fintech, and trading systems. That breadth of expertise is rarely found in one full-time hire.
We become your technical team. Join your calls, attend your meetings, present to your investors. Available 24/7 across time zones. Strategic guidance plus the ability to execute what we recommend.
Our clients get senior technical leadership without the overhead, the months of searching, or the equity dilution. And if your needs grow, we scale with you.
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Learn moreNot Sure Which Is Right for You?
The decision depends on your specific situation: stage, budget, timeline, and technical needs. We are happy to discuss your circumstances honestly, even if that means recommending you hire a full-time CTO instead of working with us.
No sales pitch. Just an honest assessment of what makes sense for your company.