Tech Start-Ups whose founders have a tech background have a higher success rate. – Truth or Myth?
When you’re in a startup, the first ten people will determine whether the company succeeds or not. Each is ten percent of the company. So why wouldn’t you take as much time as necessary to find all the A-players?… A small company depends on great people much more than a big company does. — Steve Jobs
Importance of technology for high tech startups
Before going into the detailed discussion of founders with tech background are necessary for higher success rate or not, let us first discuss the importance of technology for high tech startups. To be precise, technology is vital for every startup for the below mentioned causes:
- Keeps costs low which is very crucial for any new venture
- Improves efficiency
- Prevents incurring cost in services that are outdated or will not be needed 12 to 18 months down the line
Now with the new normal in place, most businesses are taking their operational mode to online platforms. Thus, for startups too this feature of being available online calls in for the need of technology and people with sound tech knowledge and background. Having said this, let us discuss the benefits of having founders with tech background in details.
Why are startups most likely to succeed having technical founders?
Better understanding of solution architecture:Although not always true, but most often than not tech founders have a upper hand in understanding the solution architecture better than non-tech founders.
Hiring external CTO:Startups with non-tech founders will need to hire external CTO. Now if their wavelength and mindset don’t match, the operations might become unsuccessful and cumbersome. Whereas, a tech founder with a technical background do not need to rely on a CTO and can still do the needful at its best.
Dependency of filling the technology gap:Startups with non-tech founders will always find it difficult to bridge the technology gap. This will increase their dependencies on technology consultants, CTOs, external technology providers which in turn will increase the risk of dilution of IPs.
A list of successful startups with tech founders
- Daniel Ek, CEO of Spotify is a technologist, entrepreneur and billionaire who created the music streaming software.
- Mark Zuckerberg, CEO at Facebook the renowned social media application.
- Brian Chesky, Co-founder and CEO at Airbnb, a popular online travel accommodation booking application
- Steve Jobs, Former CEO at Apple, is perhaps the most successful tech visionaries the world has ever known.
- Travis Kalanick, Former CEO at Uber combined the power of cloud computing, geolocation, and smartphone technology to give the world the most successful ride addressing application.
- Jack Dorsey, CEO at Twitter which is also considered as the world’s largest networking site.
So we see that there is no dearth of startups with tech founders who have given the world some amazing concepts of traveling, listening to music, or simply communicating. All the above mentioned tech visionaries have paved the path for tech startup founders to build, manage, and succeed in a business. However, we can also find a number of startups with non tech founders too who have achieved success in their respective spheres. To name a few, Walker Williams of Teespring, Stephanie Tilenius of Vida Health Inc., Sean Rad of Tinder, Jamie Wong of Vayable, Evan Sharp of Pinterest, have proved that if you have innovative ideas, you can surely flourish in the startup world. Knowledge grows with expertise and experience and not by coding alone.
So how can non-tech founders thrive in this game of startup?
Some great concepts or innovative ideas and a perfect collaboration with deep tech companies can be your key to success. An ideal deep tech company will know the in and out of startup game, have worked with several startups from the time of inception till go to the market stage. Although you should be totally aware of the pros and cons of collaborating with external tech partners and here our previous blog, “Find & Hire Developers for Your Startup [2021 Guide]” can help you find the right answers to all your queries.
At Dreamztech we have worked with several startups and paved their way to success after building a rock solid foundation for them. We have not only provided them with end to end technology support but also helped them scale up by giving them an edge over others. Contact us today, to know your key to success in the world of startup today.