Can my startups entire SWE team be outsourced to pro firm?
I'm working on a fintech software startup, the software is too complicated for fellow potential cofounder SWEs to develop, so I'm outsourcing the development to a domestic professional fintech software engineering firm. VCs aren't happy if I don't have a tech guy as my cofounder but he would be useless and not able to develop the software in the first place. What to do? Don't wanna give up chunks of equity to someone that isn't gonna be able to do much.
If you think tech guys or a CTO are useless outside of development of software and that you'll be able to outsource the work and succeed you have a long and painful road ahead of you. The VC requirement isn't set because they think you shouldn't out source. They have it to screen out people like you.
+1 on outsourcing, please do it. I want to see how it works.
Enlighten me then, what could he possibly do as a CTO that the outsourced firm with their team of dozens of seasoned engineers and support staff couldn't do? We aren't building facebook from scratch more like a niche tool for finance
No right answer, but might be good to talk to him about it. If you're worried he/she can't do it, then you should talk to them. If they are confident they can do it, then perhaps tie the equity of the company into performance (e.g. their portion will only be realized if they achieve XYZ) Going to another engineering firm brings up alot of questions of whether you really have a product. If you can perfectly address this then fine.
Very wise
First thing your CTO can do that the firm can't is file a patent that benefits you. You may be right that it requires this special firm, but, I doubt it. Very few things are that specialized. But some are. My question is how do "you" know? It's too specialized for you to grok. It's too hard for your CTO to handle. The only people who understand it are the people that want you to pay them to understand it. I'm sure their motives are 100% aligned with you ... My advice is to find someone independent who does understand it and make them your CTO or an advisor. You don't want to build a FinTech company that nobody at the company understands. Good luck!
You need a reality check or a new CTO.
Fire him.