Technical advisors play a major role in helping startups overcome fundamental challenges and transform into successful businesses. They provide knowledge and expertise from past endeavors that can help you navigate the rough waters of development. And, their names and networks can open many doors and unexpected opportunities.
For SaaS startups, technical advisors play an especially important role. These advisors offer the guidance to develop a winning product that meets the needs of your customers, satisfies your investors, and is ready to scale.
Finding the right technical advisor for your startup is no easy feat. To help you in this process, this guide provides an in-depth discussion on technical advisors, where to find them, and how to determine if they are the right fit. We also discuss an alternative to finding and hiring a technical advisor for those who want to pursue another option.
What is a startup technical advisor?
A startup technical advisor is a professional who helps support and navigate the technical aspects of a business. They provide startup founders and leadership teams with the expert guidance, information, and knowledge needed to make the critical decisions that shape the course of product strategy and development.
Technical advisors are not the same as a standard startup advisor. Standard startup advisors help navigate the processes and challenges of starting and scaling the business as a whole—focusing on strategy, industry and growth. Whereas the technical advisor’s focus starts and stops on the technology-related matters. This distinction is important because you want to find advisors to fill the critical gaps that exist within the executive team. And, it is often the case that building a startup advisory board is necessary to tackle all the distinct challenges of your business.
Tactical versus strategic technical advising
The role of technical advisor can be further subdivided into two types of advisors: strategic technical advising and tactical technical advising.
Strategic technical advisor: The strategic technical advisor’s role is to focus on the what, how, and when of product development. They advise on the roadmapping that is going to get you to the MVP and beyond. Issues addressed on the strategic side include:
Are the right questions being asked to the founders?
What is the strategy and timing of bringing on development talent?
How are you managing your development resources?
Choosing the right technical frameworks.
Meeting deliverables.
Tactical technical advisor: The tactical technical advor’s role is to focus on the code and product functionality. They act as a product advisor guiding the development team towards building the right product and ensuring you maintain control of development. Issues addressed on the tactical side of technical advising include:
Is the product being built in a way that is scalable?
Does the product have the right functionality?
If outsourcing, are you keeping access to the source code so you can take ownership of it?
Making sure you are in control of the development.
While it is possible to find a technical advisor that fills both roles, you’ll want to consider your gaps and whether you need one, the other, or both.
Key benefits of working with a technical advisor
The biggest benefit of a technical advisor is filling the knowledge and expertise gaps that exist within your startup’s leadership teams. This means that you need to be candid and clear about your strengths and weaknesses so that you can find the right advisor for your unique business (more on this later).
In general some of the key benefits you can expect when working with a technical advisor include:
Overcome technical challenges - An advisor’s wealth of technical experience and insights position them to help you leap over those hurdles and avoid common pitfalls.
Build versus buy - Determining what to build versus what to buy keeps you from reinventing the wheel and improves asset allocations.
In-house versus third-party development - There are a lot of factors that go into deciding between building in-house and contracting third-party development teams. Advisors can assist in this decision making.
Development contracts - If you do decide on a third-party development team, the advisor can guide you in the contract development.
Technical leadership - Help lead in-house development teams and streamline your development process
Product Scalability - Technical advisors can help prepare you for post MVP roadmapping. Specifying the right things to build, and how to design and implement scalable architectures eases the transition from prototyping to production.
Code assessments - Regular technical review of the code is an absolute must for maintaining control of development.
Improved communications - An advisor can translate technical issues to non-technical team members. This helps in decision making by leadership and in turn can improve teamwork and coordination across teams as well.
Appropriate use of third-party products - It is often the case that a product is purchased for one functionality that resolves a pain point. But, there is often much more to the product that goes unused. An advisor’s expertise in the field can ensure you are getting the most out of your third-party products and that you are using them properly.
When is the right time to bring on a technical advisor?
While there is never really a bad time to get a fresh perspective of your startup, there are some key moments when bringing on an advisor can make a pivotal difference in your trajectory.
Here are seven of those moments.
1. Hiring key staff
When hiring key staff, a technical advisor can provide the expertise needed to help you make the right selections. This is especially true when the roles you are hiring for fall outside your own knowledge base.
2. Building partnerships
Technical advisors will have their own network of professional colleagues and friends. You can utilize those relationships if you are looking to build strategic partnerships with your startup.
3. Improve scaling strategy
Do you have your MVP and are struggling to gain a foothold on production? This is a good time to consider bringing on a technical advisor if you haven't already.
4. Tackle particular challenges
An outside perspective can be a game changer when you are faced with a complex technical challenge. Sometimes overcoming that challenge requires knowledge your team doesn’t have. Other times it just requires tackling the problem from a different approach. Either way, a technical advisor can help you navigate (and overcome) those challenges.
5. Upgrading the user experience
Good user experience is an absolute must. It can be what sets you above the competition or sinks you into obscurity. And, when you have an incredible UX, your users double as ambassadors—which is a win on all accounts. Having your CIO utilize the expertise and knowledge of a technical advisor to improve your UX can be a really good idea.
6. Raising funds
Technical advisors can provide you with the support, guidance, and technical due diligence necessary to prepare your product for presentation. They can also help you prepare your pitch deck and guide you in communicating the technical aspects of your startup to potential investors.
7. Communication failures
Solid communication is vital for a successful startup. Communication failures can occur between technical and non-technical teams with detrimental effects to the business. If you find yourself in this position, then bringing on a technical advisor to bridge the communication gap is a good idea.
How to determine if a technical advisor is the right fit for your startup
When you are ready to bring on a technical advisor, make sure you thoroughly screen them. Each advisor is going to have their own strengths and weaknesses, network groups, and other commitments that can interfere with your own agenda and timelines. And, being an expert does not guarantee they can advise.
Here are some things to consider when finding the right technical advisor for your startup.
Evaluate their technical skills and expertise
Treat the advisor as a new hire and thoroughly vet their credentials. Make sure you are checking both that they have the expertise they say they have and that those are the skill gaps you’re needing to fill.
Compare what services they provided to your needs
There is no clear cut definition to what a technical advisor will provide. Some advisors will offer comprehensive packages of services while others only offer strategic planning or technical guidance. Make sure there is a clear understanding of what is being offered by the advisor.
Determine if their availability meets your timelines
A general rule of thumb is the bigger the name the less available they are. If your objective is the name tag, that’s great. But, if you're looking for an advisor to dive in and help you transform your startup, make sure they have the time.
Think about your needs and deadlines when you’re selecting an advisor. And, make sure you clearly establish availability expectations in the screening process.
Make sure they understand your business and your challenges
Every business is different. And while there may be common themes, it is the not common parts that often need the most attention. An advisor needs to understand your business and your unique challenges to be the most effective.
Consider their communication methods
Communication is the cornerstone of success. It also comes in a variety of forms. Be clear on what type of communication you are expecting from your technical advisor. Is it a phone conversation where you scramble to take notes, or a written report detailing actionable steps to take?
Also, make sure you can understand them. The brightest mind is useless if you can’t translate what was said.
Check the culture fit
Lastly, consider how the advisor fits within your culture. This person will have a significant impact (if done right) on your startup. So make sure the effects of those impacts keep you moving in the direction you intended to go.
Determining compensation for a technical advisor
The most common method of compensation for technical advisors is through equity. The reason being the unique nature of an advisor and the strong incentive for success equity provides.
Deciding how much equity to compensate depends heavily on the expertise of the advisor, the amount and length of time they will dedicate to your startup, and what deliverables are expected.
Equity offers typically range from 0.5% to 2% in the form of restricted shares. A general rule of thumb is 1% equity for two work days a month with no other forms of compensation. But you’ll want to dig a little deeper into compensation methods to determine what the right offer is.
7 methods for finding technical advisors
Here are some primary methods to start your hunt for the right technical advisor.
1. Cold email
Cold email is a hidden gym for success. That success does require a level of craftsmanship that is not easy to master. But given time, practice, and a strong resolve, there are no limits to what you can reach or what you can achieve.
With cold email you can pick anybody as a potential technical advisor. However, when targeting great advisors expect that they are receiving tons of emails in addition to yours.
You also have to be careful on how many emails you send each day to avoid the spam label.
Tips for getting a response:
Be direct - Consider how much time you give to incoming emails—now cut that in half. That is how much time you have to catch the advisor's attention. Be direct so that their time spent is not on fluff or flattery.
Provide incentive - The chances of capturing the attention of an advisor through cold email greatly improves if you can make a connection into their world. Whether it’s supporting a common cause or providing insight/feedback on their work, the connection will greatly improve your chances of a reply.
Customize each email - If you are reaching out to someone directly then you should have a reason why. Incorporate that into your email. This will create a personalization that can resonate with the potential advisor.
Avoid automation - Automated emails are a waste of your time. If you happen to avoid the spam filters (which is highly unlikely) then you’ll probably end up irritating the person you are trying to recruit.
Set sent email limits - Sending too many cold emails at one time can trigger spam filters. Also, you need to give people a little time to respond.
2. Mentorship platforms
Mentorship platforms offer an easy way to obtain expert advice. Be it a set of sessions or long-term mentoring, these programs simplify the process of finding and vetting the experts who can support you in your growth and challenges.
There are a wide variety of programs that range from providing dedicated mentors to your startup to more class-like settings where your employees go to improve their own skills. So be sure to know what you are looking for before you start researching. And take some time to understand what makes the best mentoring programs.
These programs also tend to be quite expensive.
3. Startup networking events
Networking events such as startup groups, meetups, and demo-days are a great place to find potential advisors. These events are where advisors (and oftentimes investors) go see what young startups are doing and to hear your ideas.
If you choose this route, make sure you attend industry specific events. This will increase the pool of potential advisors with connections and experience tailored to that industry.
4. Accelerators
Are you ready for a deep dive into the mentoring and advising world? Accelerator programs are full steam ahead. These programs will give you one-on-one mentoring and advising and push you fast and far. Many of them, such as Techstars and Y Combinator, also provide a dedicated advisor.
Before joining an accelerator make sure you clearly understand the agreement you are signing. For example, Techstars investment terms stipulate a 6-9% equity stake, preemptive rights, and more.
5. Online communities
Online communities provide the communication spaces where anybody with shared interests can join, talk, and interact with others. When it comes to finding a technical advisor, online communities are places best suited for finding peer-to-peer advising. If that's what you’re looking for then here’s a list of communities to check out.
6. Partners
As you have worked to build your startup, you have undoubtedly built relationships with customers, suppliers, or other businesses. Chances are there are some experts in the mix that might be the right fit for your technical advising needs.
Don’t hesitate to ask a few questions every so often and see what kind of advice you get. You might find that the advisor you need is already in your circle.
7. Development agencies
While not a direct hunting ground for technical advisors, development agencies or other third-party vendors may provide technical advising as part of their services. For instance, DevSquad is a SaaS development agency that automatically assigns a technical advisor with your development team. This ensures the team stays on track and that you are getting the most out of your investment.
If you are considering working with a development agency then make sure they include a technical advisor as well.
What to include in a startup advisor agreement
While each advisory agreement will need to be customized to the specific situation, some common (and important) components to include are:
Confidentiality and non-disclosure agreement - Protecting your intellectual property and proprietary information is a must.
Responsibilities - A clear and comprehensive list of responsibilities makes sure everyone is on the same page.
Deliverables - Whether it’s a weekly phone call, a comprehensive report, or anything in-between, be sure to include what is being provided by the advisor.
Length - Clearly identify the duration and time requirements of the agreement.
Compensation - Take the time to carefully craft your compensation agreement.
An alternative approach to hiring a technical advisor
The process of finding and vetting advisors and developing an advisor agreement is challenging, time-consuming, and expensive. Add the process of understanding your knowledge gaps and identifying your needs and the whole situation becomes daunting.
An alternative approach is to gain technical advising in combination with a development team through DevSquad. With DevSquad you get strategic advice and product strategy from our CEO and CTO who help with technical decisions, architecture, development feasibility, cost, aligning to user needs, and product-market fit. You can also avoid hiring or finding a tactical technical advisor and get one with your development team so your development team stays on track. This is essential for founders without technical or product management experience. DevSquad only takes on new products that we can provide strategy for and we only select the best potential products because we can only onboard a couple of new customers a month.
Are you building a SaaS startup? Get expert technical advice and product strategy from our CEO and CTO alongside fully-managed product development. Learn more about our SaaS development agency.
