What is a Fractional CTO? Australian Founder's Complete Guide

Last week, a founder called me. She'd just closed a pre-seed round and needed to build an MVP.

"Should I hire a full-time CTO?" she asked. "Or just contractors?"

Here's the thing: she didn't need either. Not yet. What she needed was someone to help her make the right technical decisions without burning $180K+ on a full-time CTO she didn't have enough work for.

This conversation happens twice a month. And it's exactly why fractional CTOs exist.

What is a Fractional CTO?

A fractional CTO is an experienced technical leader who works with multiple startups part-time, typically 1-2 days per week per client.

Think of it like this: instead of hiring one CTO for 5 days a week at $180K+ per year, you hire a senior CTO for 1 day a week at a fraction of the cost.

Here's what makes fractional CTOs different from consultants or agencies:

• Strategic leadership, not just execution: We make technical decisions, not just build features
• Ongoing engagement: We're part of your team for months, not a one-off project
• Multiple startups: We see patterns across companies, so we know what works
• Skin in the game: Often includes equity, we care about your success

We work with pre-seed and seed-stage founders who need technical leadership but aren't ready to hire a full-time CTO.

What Does a Fractional CTO Actually Do?

I spend my time across three main areas:

1. Technical Strategy & Decision-Making

Founders come to me when they need to answer questions like:

• Should we build or buy?
• What tech stack makes sense for our MVP?
• How do we validate this idea without building anything?
• Is this quote from a dev shop reasonable?
• When should we rebuild vs refactor?

These decisions can cost or save you $50K+. Getting them right matters.

2. MVP Development & Product Strategy

We help you:

• Define what your MVP actually needs (hint: way less than you think)
• Design the product before writing code
• Build it in 8-12 weeks, not 6 months
• Launch with real users, not perfection

Most founders waste 3 months building features no one wants. We make sure you build the right thing.

3. Technical Hiring & Team Building

When you're ready to hire your first developer or build a team, we:

• Write job descriptions that attract good candidates
• Screen developers (technical interviews)
• Help you evaluate offers and negotiate
• Onboard your first hires properly
• Set up development workflows and processes

The wrong first technical hire can cost you 6 months and $100K. We've hired 50+ engineers. We know what to look for.

How Much Does a Fractional CTO Cost in Australia?

Let's talk numbers. Here's what you'll typically pay:

Market Rates (Australia):

• Hourly: $200-$350/hour (but most don't work this way)
• Monthly retainer: $5,000-$15,000/month for 1-2 days per week
• Equity component: Often 0.5-2% vested over 2-4 years

Our Pricing at ShipSixty:

We work on monthly retainers:

• Pre-seed (MVP building): $8K-$12K/month + 1-2% equity
• Seed (scaling & hiring): $10K-$15K/month + 0.5-1.5% equity
• Series A (bridge CTO): $12K-$18K/month + 0.25-1% equity

This typically covers:

• 1-2 dedicated days per week
• Daily async support via Slack
• Weekly strategic sync (30-60 min)
• Monthly deep-dive sessions
• Unlimited questions and advice

When Should You Hire a Fractional CTO?

You're a good fit for fractional CTO support if:

✅ You're a Non-Technical Founder Building an MVP

You know the problem, you know the market, but you can't code. You need someone to help you make technical decisions and build the right thing.

✅ You're Pre-Seed to Seed Stage

You've raised some money (or bootstrapping) but you're not ready for a $200K+ full-time CTO. You need strategic guidance now, not in 6 months after a hire.

✅ You Need to Make Technical Decisions Fast

You're evaluating agencies, choosing tech stacks, or trying to figure out if a quote is reasonable. You need an expert, not Google and hope.

✅ You're Hiring Your First Technical Team

You don't know how to interview developers or what "good" looks like. You need someone who's hired 50+ engineers to guide you.

✅ You Have Developers But No Technical Leadership

Your developers are building features, but no one's making strategic decisions about architecture, tech debt, or what to build next.

When You DON'T Need a Fractional CTO

Let me be honest about when this doesn't work:

❌ You Need Someone Full-Time

If you have a team of 5+ engineers and need daily technical leadership, you need a full-time CTO. Fractional won't cut it.

❌ You Need Hands-On Coding 40 Hours/Week

We write code, but we're strategic leaders first. If you need someone to build features full-time, hire a senior engineer or contractor.

❌ You're Post-Series A

At Series A+, you typically need a full-time CTO. We can help you hire and transition, but we're not a long-term solution at that stage.

❌ You Want the Cheapest Option

If your only criteria is cost, hire offshore contractors. We're not the cheapest option. We're the right decision for founders who value strategic guidance.

Fractional CTO vs Full-Time CTO: What's the Difference?

Here's how to think about the tradeoffs:

Fractional CTO (Pre-Seed to Seed):

• Time commitment: 1-2 days/week (10-16 hours)
• Cost: $8K-$15K/month + 0.5-2% equity
• Speed to start: Immediate (no 3-6 month hiring process)
• Best for: Strategic decisions, MVP building, technical guidance, hiring help
• Not ideal for: Daily hands-on management of 5+ person team

Full-Time CTO (Seed to Series A+):

• Time commitment: 40 hours/week
• Cost: $180K-$250K salary + 2-5% equity + benefits
• Speed to start: 3-6 months to hire (if you find the right person)
• Best for: Managing large teams, deep technical work, long-term architecture
• Not ideal for: Pre-seed stage when you don't have enough work for 40 hours/week

The truth? Most pre-seed founders don't have 40 hours/week of CTO work. You need 10-15 hours of strategic guidance plus execution help from contractors or junior developers.

That's exactly what fractional CTOs provide.

How We Work: The First 90 Days

Here's what typically happens when we start working together:

Days 1-14: Discovery & Technical Audit

• Understand your vision and business goals
• Review any existing technical work or plans
• Audit current tech stack (if you've already started building)
• Identify immediate risks or bad decisions
• Deliver technical roadmap and recommendations

Days 15-60: Strategy & Execution

• Define MVP scope (what we're actually building)
• Choose tech stack and architecture
• Design product (user flows, wireframes, technical specs)
• Start building or manage dev team/agency
• Weekly syncs to review progress and make decisions

Days 61-90: Launch Preparation & Team Building

• Complete MVP build
• Set up infrastructure and deployment
• Launch with first users
• Start technical hiring if needed
• Plan next phase (scaling or features)

By day 90, you have a launched MVP, a clear technical roadmap, and you've made smart decisions that save you $50K+ in wasted development.

---

About ShipSixty: I'm a fractional CTO working with Australian startups from pre-seed to Series A. I help non-technical founders build MVPs, hire technical teams, and make smart technology decisions. Based in Sydney, working with teams across Australia and remote. Learn more about how we work →