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CTO vs Tech Lead vs VP Engineering: What's Right for Your Startup?

CTO vs Tech Lead vs VP Engineering: What's Right for Your Startup?

2025-01-22
6 min read
Leadership

You've decided you need technical leadership. But what exactly do you need?

CTO? Tech Lead? VP Engineering?

The titles are confusing, the responsibilities overlap, and the wrong hire can set your startup back months.

This guide breaks down each role, when to hire them, and how to structure your technical leadership for success.


The Three Technical Leadership Roles

CTO (Chief Technology Officer)

The CTO is the executive-level technical leader. They're responsible for:

  • Technology strategy: Where should the product go technically?
  • Technical vision: What technologies should we invest in?
  • Engineering culture: How does the team work together?
  • Technical hiring: What technical talent do we need?
  • Board-level communication: Translating technical matters for stakeholders

Not typically doing:

  • Writing code daily
  • Code reviews
  • Individual contributor work
  • Sprint-by-squad management

Tech Lead

The Tech Lead is the technical manager of a specific team. They're responsible for:

  • Technical direction: What does this team build and how?
  • Code quality: Ensuring the team's code meets standards
  • Architecture decisions: Making technical choices for the team
  • Mentorship: Helping developers grow
  • Delivery: Ensuring the team ships on time

Not typically doing:

  • Company-wide strategy
  • Hiring across teams
  • Budget management
  • Executive reporting

VP Engineering

The VP Engineering sits between CTO and Tech Lead. They're responsible for:

  • Engineering organization: Multiple teams working together
  • Processes: How engineering work gets done
  • Scalability: Engineering practices that scale
  • Hiring at scale: Building the engineering team
  • Cross-team coordination: Breaking down silos

Not typically doing:

  • Code daily
  • Product strategy
  • External technical relationships
  • Individual team code reviews

Role Comparison Table

Responsibility

CTO

VP Engineering

Tech Lead

Company-wide tech strategy

Multiple team management

Single team management

Technical vision✅ StrategicPartialTeam-level
Code reviewRarelyRarely

Hiring (company-wide)

Team-level

Board communication

Sometimes
Hands-on codingRarelySometimes

When to Hire Each Role

Stage 1: Pre-Product-Market Fit (1-5 Engineers)

Who you need: Senior IC (Individual Contributor) or Tech Lead

Signs you need help:

  • Technical debt piling up
  • No clear architecture
  • Fear of making big technical decisions
  • Development slowing down

What to hire:

  • A senior developer who can code and lead
  • Someone who can make decisions without constant input
  • Person comfortable with ambiguity

Not yet: Don't hire a CTO or VP Engineering. You don't need executive-level leadership yet.

Stage 2: Finding Product-Market Fit (5-15 Engineers)

Who you need: Tech Lead or Engineering Manager

Signs you need help:

  • Multiple projects happening at once
  • Code quality suffering
  • Communication breaking down
  • Need to hire more engineers

What to hire:

  • Tech Lead for your first team
  • Someone who can manage 3-5 developers
  • Person who can scale engineering practices

Consider: Part-time CTO or technical advisor for strategy

Stage 3: Early Growth (15-50 Engineers)

Who you need: VP Engineering or CTO + Tech Leads

Signs you need help:

  • Multiple teams forming
  • Process breaking down
  • Hiring velocity too slow
  • Technical inconsistency across teams

What to hire:

  • VP Engineering to manage multiple teams
  • CTO if you don't have one
  • Individual Tech Leads for each team

Stage 4: Scaling (50+ Engineers)

Who you need: CTO + VP Engineering + Tech Leads

Signs you need help:

  • Engineering org needs structure
  • Multiple product lines
  • Complex technical challenges
  • Need to attract senior talent

What to hire:

  • CTO for company-wide strategy
  • VP Engineering for org management
  • Tech Leads for each team

CTO Hiring Guide

What to Look For

Must-haves:

  • 10+ years of engineering experience
  • 3+ years in leadership role
  • Startup experience (ideally Series A-B)
  • Strong communication skills
  • Ability to translate business to technical and vice versa

Nice-to-haves:

  • Fundraising experience
  • Exit experience
  • Domain expertise in your industry
  • Open source contributions
  • Strong network in engineering

Interview Questions

  1. "Tell me about a time you made a technical decision that turned out wrong. What did you learn?"
  2. "How do you balance speed vs. quality in a startup?"
  3. "Describe your approach to hiring engineers."
  4. "How do you communicate technical topics to non-technical stakeholders?"
  5. "What's your philosophy on technical debt?"

Compensation

StageSalaryEquityBonus
Series A$180,000-$250,0000.5-2.0%10-20%
Series B$220,000-$300,0000.25-1.0%15-25%

Questions to Ask Yourself

  • Do I need someone to raise our technical credibility with investors?
  • Do I need help with technology strategy?
  • Am I spending too much time on technical decisions?
  • Do I need to attract senior engineering talent?

If yes to 2+, consider a CTO.


VP Engineering Hiring Guide

What to Look For

Must-haves:

  • 8+ years of engineering experience
  • 3+ years managing 5+ engineers
  • Experience scaling engineering teams
  • Strong process and methodology knowledge
  • People management skills

Nice-to-haves:

  • Experience at a scaling startup
  • Strong engineering background (not just management)
  • Experience with remote/distributed teams
  • Strong technical network

Compensation

StageSalaryEquityBonus
Series A$160,000-$220,0000.3-1.0%10-15%
Series B$200,000-$280,0000.2-0.5%15-20%

Tech Lead Hiring Guide

What to Look For

Must-haves:

  • 5+ years of engineering experience
  • 2+ years in technical leadership role
  • Strong coding skills (can still contribute)
  • Architecture experience
  • Mentorship skills

Compensation

StageSalaryEquityBonus
Series A$140,000-$180,0000.1-0.5%5-10%
Series B$170,000-$220,0000.05-0.25%10-15%

Alternative: Fractional Technical Leadership

Not ready to hire full-time? Consider fractional leadership:

Fractional CTO

  • Works 1-3 days/week
  • Provides strategic guidance
  • Helps with hiring and architecture
  • Best for: Pre-PMF startups needing strategy

Technical Advisor

  • Works on specific projects
  • Provides expertise on demand
  • Helps with specific challenges
  • Best for: Specific technical problems

Retained Consultant

  • Ongoing relationship
  • Available for questions and guidance
  • Helps with decisions
  • Best for: Founders who need trusted advisor

Cost:

OptionCostBest For
Fractional CTO

$3,000-$10,000/month

Pre-PMF strategy
Technical Advisor

$500-$2,000/project

Specific challenges

Retained Consultant

$2,000-$5,000/month

Trusted advisor

Common Hiring Mistakes

Mistake #1: Hiring Too Senior

Problem: Hiring a former Netflix VP for a 5-person startup

Why it fails: Their skills don't match your needs. They're used to scale, not scrappiness.

Solution: Hire for your stage. A senior IC or first-time Tech Lead often works better.

Mistake #2: Hiring Too Junior

Problem: Promoting a 2-year engineer to Tech Lead

Why it fails: They lack the experience to make good decisions or mentor others.

Solution: Ensure 5+ years of experience and demonstrated leadership ability.

Mistake #3: Hiring the Wrong Type

Problem: Hiring a hands-on CTO who wants to code instead of strategize

Why it fails: You need strategy, not code reviews.

Solution: Be clear about expectations. Test for the skills you need.


Org Structure by Stage

Scale

Structure

1-5 Engineers

Founder → Senior Developer/Tech Lead → 2-4 ICs

5-15 Engineers

Founder → Tech Lead (Team 1) → 3-5 ICs → Tech Lead (Team 2) → 3-5 ICs

15-50 Engineers

CTO → VP Engineering → 3 Tech Leads → 3-5 ICs each

50+ Engineers

CTO → 2 VPs Engineering → Directors → Tech Leads → ICs


Quick Decision Guide

Your Situation

Recommended Role

Pre-PMF, 1-5 engineers

Senior IC / Part-time CTO

Finding PMF, 5-15 engineers

Tech Lead

Early growth, 15-50 engineers

VP Engineering

Scaling, 50+ engineers

CTO + VP Engineering

Need strategy, not management

Fractional CTO

Specific technical challenge

Technical Advisor

The Bottom Line

Hire based on your stage, not your aspirations.

  • Pre-PMF: Senior IC or fractional CTO
  • Finding PMF: Tech Lead
  • Early growth: VP Engineering
  • Scaling: CTO + VP Engineering

The right hire at the wrong time is still the wrong hire. Wait until you need the role, then move quickly.

At Startupbricks, we've helped dozens of startups structure their technical leadership. We can help you identify what you need, find the right candidates, and avoid costly hiring mistakes.

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