Glossary
Technical cofounder (software cofounder)
A technical cofounder, sometimes called a software cofounder, is a partner who builds and owns the technology side of a product in exchange for a stake in the business, instead of billing for the development as a supplier.
How it differs from hiring an agency
An agency is paid to deliver a scope: it estimates, builds, invoices, and moves on to the next client. A technical cofounder is paid in outcome. If the product fails, the stake is worth nothing, so a cofounder has a real reason to question the spec, cut what will not matter, and stay through the unglamorous years of maintenance and iteration that follow launch.
The relationship also survives the first version. An agency contract ends at delivery; a cofounder owns the technology roadmap for as long as the company exists.
What a founder gives up and gains
The founder gives up equity, and with it part of the upside and part of the control over technical decisions. In exchange, the cash cost of building drops sharply, the technology gets an owner instead of a vendor, and the incentives of the person writing the code are aligned with the survival of the business rather than with billable hours.
The trade is worth it when cash is scarcer than equity and when the product will need sustained technical judgment, not just an initial build.
How Cazullo applies it
For selected products, Cazullo builds at a reduced cost and joins as technical cofounder, taking a stake instead of full fees. Because a cofounder role is a long commitment, Cazullo takes on a small number of these partnerships per year, and only for products where it believes in both the market and the founder.