Fractional CTO Services · Equity Partnerships
Your Startup Deserves a CTO.
You Shouldn't Have to Pay $300k for One.
Fractional CTO services for startups. Lower upfront cost, long-term alignment through equity. We succeed when you succeed.
2
Current equity partnerships
$10.5M
Raised by portfolio
15+
Years experience
The Challenge
The Full-Time CTO Dilemma
You need technical leadership to ship product, raise capital, and scale your team. But hiring a full-time CTO means:
- ❌$200-$350k/year salary + benefits + equity
- ❌3-6 months to hire (if you find the right person)
- ❌High risk if they're not the right fit (termination costs, knowledge loss)
- ❌Expensive at seed stage when cash runway is everything
The result? Founders delay critical technical decisions, ship broken MVPs, accumulate tech debt, or make bad early hires.
Our Solution
Fractional CTO. Full Partnership.
1337ITS provides senior technical leadership without the full-time price tag. We take equity instead of high salaries because we believe in your vision.
- ✅Start immediately (no 6-month hiring process)
- ✅60-80% lower cash cost than full-time CTO
- ✅Aligned incentives (we win when you exit)
- ✅Proven experience (15+ years, multiple exits)
- ✅Flexible commitment (scale up/down as you grow)
Service Tiers
Three Tiers. One Goal: Your Success.
Pick the tier that matches your stage. All tiers include equity participation and hands-on execution.
Starter Partnership
Get your technical foundation right from day one
$2,000/month+ 20% equity
Pre-seed to Seed · <$500k ARR · No technical co-founder
10 hours/week · 20 hours/month development
- ✓Weekly 1-hour strategy calls + async Slack access (24-48hr response)
- ✓Architecture design and technology stack selection
- ✓MVP development and infrastructure setup
- ✓Code reviews for external developers
- ✓Fundraising support (technical due diligence, investor decks)
12-month minimum, renewable annually
Growth Partnership
Scale your engineering org with confidence
$5,000/month+ 15% equity
Seed to Series A · $500k-$3M ARR · 5-20 people, 2-8 engineers
20 hours/week · 40 hours/month development
- ✓Bi-weekly 2-hour strategy sessions + weekly standups + async (4-12hr response)
- ✓Team building: hiring, onboarding, code reviews, culture
- ✓Operational excellence: CI/CD, observability, incident response
- ✓OKRs & metrics: engineering productivity, sprint planning
- ✓Full feature development and DevOps automation
12-month minimum, renewable annually
Scale Partnership
Executive-level leadership for high-growth companies
$10,000/month+ 10% equity
Series A to B · $3M-$20M ARR · 20-100 people, 10-40 engineers
30-40 hours/week · 60 hours/month allocation
- ✓Daily async check-ins + weekly exec meetings + quarterly board meetings (2-4hr response SLA)
- ✓Full CTO responsibilities: strategy, org design, budget, M&A diligence
- ✓Executive peer: report to CEO, partner with C-suite
- ✓Team leadership: manage eng managers, 1:1s, performance reviews
- ✓Strategic architecture and technical M&A support
12-month minimum, renewable annually
Competitive Analysis
How We Compare
| Feature | 1337ITS Fractional CTO | Full-Time CTO | CTO Agency |
|---|---|---|---|
| Annual Cost | $24k-$120k + equity | $200k-$350k + equity | $180k-$360k (no equity) |
| Equity Alignment | ✅ 10-20% (true partnership) | ✅ 2-5% (market rate) | ❌ None (vendor) |
| Start Time | 1 week | 3-6 months | 2-4 weeks |
| Experience | 15+ years, multiple exits | Variable (often first-time) | Variable (often junior) |
| Hands-On Code | ✅ Yes (we ship) | ✅ Yes | ⚠️ Limited |
| Flexibility | ✅ Scale up/down | ❌ Fixed cost | ⚠️ Contractual tiers |
| Risk | Low (12mo contract) | High (salary + benefits) | Medium (agency lock-in) |
| Business Alignment | ✅ Equity = exit incentive | ⚠️ Salary = hours incentive | ❌ Billable hours incentive |
Our Model
Why We Take Equity (And Why You Should Want Us To)
Traditional consulting has a fatal flaw: misaligned incentives.
- •Hourly consultants profit from more hours, not better outcomes
- •Agencies optimize for contract renewals, not your success
- •No skin in the game = conservative advice, no long-term commitment
We're different. We take equity because:
- ✅We succeed when you exit (not when we bill more hours)
- ✅We're committed for the long haul (equity vests over 4 years)
- ✅We give strategic advice optimized for outcomes (not billability)
- ✅We signal confidence to investors (we believe in your vision enough to bet on it)
Common Questions
Frequently Asked Questions
- What if we need to hire a full-time CTO later?
- Built into our model. Many clients transition fractional → full-time after Series A. We can help recruit your full-time CTO and stay on as advisor/board member.
- How do you handle multiple clients?
- We cap our portfolio at 4 clients max (1 Scale, 2 Growth, 1 Starter). This ensures we never overcommit and each client gets the hours promised.
- What if we can't afford the monthly retainer right now?
- We can structure deferred compensation (equity-only until funding closes) or phase in retainer over 3-6 months. Let's discuss your runway.
- Do you sign NDAs?
- Yes, always. Standard mutual NDA before any technical discussions or code access.
- What happens to equity if we pivot or shut down?
- Equity vests only during active engagement. If you shut down, unvested equity is forfeited. If you pivot, we reassess fit and adjust scope or exit gracefully.
- Can you provide references?
- Yes. We can connect you with current clients (with their permission) or investor references.
- What industries do you work in?
- Current portfolio: Fintech (BKwire), B2B SaaS (Caprix). Open to any B2B software, marketplace, or API-first companies. We avoid direct competitors within our portfolio.
- Do you work with non-technical founders?
- Yes—that's our sweet spot. We translate technical complexity into business language and help you make informed decisions.
Next Steps
Ready to Partner?
Let's talk. No sales pitch—just an honest conversation about whether we're a fit for your stage and goals.
What to expect:
- •30-minute discovery call (video or phone)
- •Custom proposal within 48 hours
- •Start within 7 days of agreement