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Complete comparison to help you choose the right model for your company
The choice between fractional and full-time CTO depends on your company stage, engineering team size, and technical needs. Companies with £1M-£20M revenue and 5-20 engineers typically benefit from fractional CTOs (50-60% cost savings, same strategic value). Companies with £20M+ revenue and 25+ engineers usually need full-time CTOs for daily operational leadership.
Best for: £1M-£20M revenue, 5-20 engineers, strategic needs
Best for: £20M+ revenue, 25+ engineers, complex operations
| Feature | Fractional CTO | Interim CTO | Full-Time CTO |
|---|---|---|---|
| Commitment | 1-3 days/week | Full-time (temporary) | Full-time (permanent) |
| Duration | Ongoing (6+ months typical) | 3-12 months | Permanent |
| Cost | £3,000-£6,000/week | £8,000-£12,000/week | £150,000-£250,000/year + benefits |
| Focus | Strategic + operational | Gap-fill or transformation | All responsibilities |
| Flexibility | Scale up/down as needed | Fixed term contract | Limited flexibility |
| Best For | Growing companies, specific expertise needs | Leadership gaps, major transitions | Large orgs with full-time need |
| Cost Component | Fractional (2 days/wk) | Full-Time |
|---|---|---|
| Base Salary/Fee | £85k-£160k | £180k-£250k |
| Employer NI (13.8%) | £0 (contractor) | £25k-£35k |
| Pension | £0 | £9k-£25k |
| Benefits | £0 | £5k-£15k |
| Equity | Minimal/None | 0.5-2% (£50k-£500k+ at exit) |
| Recruitment | £0-£5k | £36k-£50k (20% fee) |
| TOTAL YEAR 1 COST | £85k-£165k | £255k-£375k |
| SAVINGS: 50-60% with Fractional | ||
For detailed cost analysis, see: Fractional CTO Cost Guide.
One surprising advantage of fractional CTOs: they're often MORE experienced than full-time candidates you can afford.
Typical profile: 18-25 years experience, CTO at 2-3 companies, scaled teams to 50+ engineers, successful exit experience. Would cost £250k-£350k+ full-time but you access their expertise 2 days/week.
Typical profile: 10-15 years experience, VP Engineering or first-time CTO, scaled team to 15-25 engineers. Good candidate but less experienced than fractional CTO you could afford.
The economics work because fractional CTOs spread their expertise across 2-4 companies, earning £150k-£300k+ annually while you only pay for the fraction of time you need.
Many companies start with fractional CTO and transition to full-time as they scale. Here's the typical path:
Model: Fractional CTO 1-2 days/week (£42k-£80k/year). Provides strategic direction, architecture, investor credibility.
Model: Fractional CTO 2-3 days/week (£85k-£160k/year). More intensive engagement for scaling team and preparing for Series B.
Transition Decision: Either (a) Convert fractional CTO to full-time if they're interested, or (b) Hire full-time CTO and transition fractional to advisory. Many fractional CTOs help hire their replacement.
Some companies use creative combinations:
Investor perspective on fractional vs full-time CTOs:
Increasingly comfortable with fractional CTOs. They care about: (1) Technical competence and credibility, (2) Ability to scale systems, (3) Strong technical DD responses, (4) Clear technical roadmap. Employment status (fractional vs full-time) matters less than capability.
Typically expect full-time executive team including CTO. At this stage (£10M+ revenue, 25+ engineers), investors want full-time leadership with equity alignment and long-term commitment.
Reality: Fractional CTOs take full ownership and accountability. They're present and engaged on their working days, attend key meetings, and drive outcomes. The difference is hours worked, not commitment level.
Reality: Many companies keep fractional CTOs for years, even at £10M-£20M revenue. The decision depends on complexity and needs, not automatic at certain revenue.
Reality: Fractional CTOs are often MORE experienced (15-20+ years) than full-time candidates at your budget. You're accessing senior expertise you couldn't afford full-time.
Ready to decide? Explore: Hire a Fractional CTO or Complete CTO Guide.
Whether you choose fractional or full-time, we can help you find the right technical leadership.