Nine out of ten startup founders make the same mistake when building their first app—they focus on the product before figuring out who's going to build it. That might sound backwards, but here's the thing: choosing between a technical co-founder and a development agency isn't just about getting code written. It's about equity, control, speed, and the long-term future of your business.
This decision will shape everything from your bank balance to your company structure. Get it wrong and you could end up giving away half your business to someone who disappears after six months, or spending your entire budget on an agency that delivers something completely different from what you imagined.
The choice between equity and cash isn't just financial—it's about whether you want a business partner or a service provider
Both options have their place in the startup world, but the right choice depends on your specific situation. Throughout this guide, we'll break down the real differences between working with a technical co-founder versus hiring a development agency. We'll cover the money side (equity vs cash), what skills you actually get, how much control you keep, and realistic timelines for getting your app built. By the end, you'll know which path makes sense for your startup.
What Is A Technical Co-Founder?
A technical co-founder is someone who becomes your business partner specifically because they can build your app. Think of them as the person who turns your brilliant app idea into actual code that works on phones and tablets—except they're not just doing the work, they're joining your company as an owner.
Most technical co-founders are experienced developers or engineers who know their way around programming languages, databases, and all the technical bits that make apps tick. They'll often have years of experience building software and understand both the fun parts (like making features work) and the boring parts (like making sure your app doesn't crash when lots of people use it at once).
The Partnership Side
Here's where it gets interesting—a technical co-founder isn't just someone you hire. They become part owner of your business, usually getting a significant chunk of equity in exchange for their technical skills and time. This means they're invested in your success; if the app fails, they don't get paid, but if it succeeds, they share in the profits.
The best technical co-founders bring more than just coding skills to the table. They often contribute to product decisions, help with strategic planning, and can even handle things like choosing which technologies to use or how to scale your app when it grows.
What Is A Development Agency?
A development agency is a company that builds mobile apps for other businesses—think of us as the team you hire when you need an app but don't have the technical skills to build it yourself. We've got programmers, designers, project managers, and testers all under one roof, ready to turn your app idea into reality.
Most agencies work on a project basis, which means you pay them a fixed amount (or hourly rate) to build your app from start to finish. Once it's done, you own the app completely and they move on to their next client. Some agencies specialise in certain types of apps—like e-commerce or fitness apps—whilst others, like us at Glance, work across different industries.
How Development Agencies Work
The process usually starts with a discovery phase where the agency learns about your business and what you want the app to do. Then they'll create designs, build the app, test it thoroughly, and help you launch it on the app stores. Most good agencies will also offer ongoing support after launch—bug fixes, updates, that sort of thing.
Look for agencies that show you their previous work and can provide references from past clients. A good portfolio tells you everything about their capabilities.
The main appeal of working with an agency is that you get access to a full team of specialists without having to hire them permanently. You pay for the work, get your app, and that's that.
The Money Question—Equity Versus Cash
Let's talk about money—because that's what everyone really wants to know about, isn't it? The biggest difference between hiring a technical co-founder and a development agency comes down to how you pay for their services. With a technical co-founder, you're typically giving away a chunk of your company; with an agency, you're paying cold hard cash.
The Equity Route
When you bring on a technical co-founder, they'll want equity in your business—usually anywhere from 10% to 50% depending on how much work they're doing and when they join. This means they own part of your company forever. No upfront costs, which sounds brilliant when you're bootstrapping, but you're essentially trading future profits for present help. If your app becomes the next big thing, that equity becomes very expensive indeed.
The Cash Route
Development agencies want payment upfront or in stages as work progresses. You might pay £20,000 to £100,000+ depending on your app's complexity, but once it's paid, it's done. You keep 100% ownership of your business and all future profits. The downside? You need that money now, not later. Many founders struggle with this because they're already tight on cash—but at least you know exactly what you're spending from day one.
Skills And Experience You Get With Each Option
When weighing up technical co-founder vs agency options for your startup app development, the skill sets you'll access are quite different—and that difference matters more than you might think.
What A Technical Co-Founder Brings
A technical co-founder usually excels in one or two areas of development. They might be brilliant at backend systems but shaky on mobile UI design. Or perhaps they're frontend wizards who struggle with server architecture. That's not a criticism—it's just reality. Most developers specialise rather than master everything, and there's nothing wrong with that approach.
What Development Agencies Offer
Development agencies like ourselves have teams with varied expertise. We've got iOS specialists, Android experts, backend developers, UI designers, and project managers all under one roof. When you hire an agency, you're not getting one person's skill set; you're accessing an entire team's combined knowledge.
The biggest mistake I see startups make is assuming all technical skills are the same—they're not, and the gaps can be expensive to fill later
The trade-off with equity vs cash app development isn't just financial. With a co-founder, you get someone deeply invested in your success but potentially limited in scope. With an agency, you get broader expertise but less personal investment in your long-term vision.
How Much Control You Keep Over Your Project
When you're building something you care deeply about, control matters. A lot. I've watched plenty of founders struggle with this decision because they want to stay in the driver's seat but also need help getting their app built properly.
With a technical co-founder, you're sharing control from day one. They become a partner in every decision—from which features to build first to how the app should look and feel. This can be brilliant if you're aligned, but it can also mean compromising on your vision when you disagree. The upside? You get someone who's as invested in the success as you are.
Agency Control Versus Co-Founder Control
Development agencies work differently. You stay the boss. You make the final calls on everything from design to functionality, and the agency builds what you want. But here's the thing—good agencies will push back when they think you're making a mistake. We've saved clients from costly errors by questioning their assumptions.
- Technical co-founder: Shared decision-making and joint ownership of choices
- Development agency: You retain final authority but get professional guidance
- Hybrid approach: Some founders hire agencies initially then bring technical co-founders on later
The control question often comes down to trust. Do you want a partner who challenges your ideas daily, or do you prefer keeping the reins while getting expert advice when needed?
Timeline And Speed Of Development
When you're excited about your app idea, waiting feels like torture. I get it—you want to see your vision come to life yesterday! But the reality is that building quality software takes time, and the route you choose makes a massive difference to how quickly you'll get there.
Development agencies win hands down when it comes to speed. We've got entire teams ready to go, established processes, and—here's the kicker—we're not learning on the job. A good agency can often have your MVP ready in 3-6 months, sometimes faster depending on complexity. That's because we're not one person trying to do everything; we've got designers, developers, and project managers all working together.
The Technical Co-Founder Timeline Reality
Technical co-founders face a different challenge. Even if they're brilliant developers, they're still just one person. They might need time to get up to speed with your specific requirements, learn new technologies, or frankly, fit your project around their day job until you can afford to pay them properly. This could mean 6-12 months or longer for the same deliverable.
If speed to market is critical for your startup—perhaps you're in a competitive space or have a limited window of opportunity—an agency's faster delivery could be the difference between success and being left behind.
The trade-off isn't just about time though; it's about what you get for that time and how much control you maintain throughout the process.
Conclusion
So there you have it—the big decision between hiring a technical co-founder or working with a development agency. Both paths can work brilliantly, but they're suited to different situations and different types of founders. I've seen successful apps launched using both approaches, and I've also seen projects fail spectacularly regardless of which route they chose.
If you've got time to find the right person and you're comfortable giving up equity, a technical co-founder might be your best bet. They'll be invested in your success because they literally own part of it. But if you need to move fast, want to keep full control, or have the budget to pay for expertise, an agency could be the smarter choice. The key is being honest about what you actually need versus what you think you need.
Don't rush this decision. Take time to really think about your situation, your goals, and your resources. Speak to other founders who've been down both paths. Most will be happy to share their experiences—both good and bad. At the end of the day, the best choice is the one that fits your specific circumstances, not what worked for someone else's completely different startup.
