Should I Use a Dev Shop? - Michael Seibel

TL;DR

Using a dev shop to build an MVP for a tech startup aiming for venture capital is risky: it often takes longer and costs more than expected, makes raising money harder, and the code may be thrown away if a later CTO wants to rebuild. The trap feels like progress until funds run low and iteration stops.

Key insights

• Founders who are not technical often believe they understand the customer and problem but cannot build, and are advised to use a dev shop instead of finding a technical cofounder.
• Successful dev-shop-built startups are the exception, not the rule; far more cases fail and remain unknown.
• Dev shops take longer because founders lack experience estimating build time and the shop has other priorities, plus the shop lacks founder-level motivation from equity.