42% of startups fail due to the wrong product
One of the biggest reasons startups fail is because they have a poor product market fit or they have the wrong technology. There were two ways startups go about solving this problem; with a tech co-founder or by “buying” the tech with an agency or freelancer:
A technical co-founder is usually aligned with the direction of the company as their only upside is equity. The disadvantage is they might not have all the skills and may not be as dedicated to making things work while they take a considerable (sometimes 50%!) equity position. They may not always stick around when things get tough leaving you with a big problem to solve on your own.
Agency or freelancer
Fee-for-service companies (individual freelancers or digital agencies) provide all the services required but are not aligned as their profit model requires them to bill more hours – i.e. create more scope for the business. Often founders are looking for a market to fit a technology solution and both these models introduce additional risk into the equation.
The third (better) way
We know that technology is hard and expensive, that agencies can get carried away with their invoicing and that tech co-founders aren’t always perfect. In exchange for a small amount of equity, we help you by reducing the cost and time for development and providing a world class team for you who are totally aligned with your vision at a cost recovery rate plus a huge commercial ready development platform called ChilliSource™.
A perfect balance
The BlueChilli model enables our startup-specialist development and product team to be completely aligned with your objectives whilst reducing the risks of early stage development for your investors. A perfect balance of equity against cash and alignment against services.
We call this the “goldilocks zone” of development alignment.
Partner with BlueChilli
Partner with BlueChilli and we’ll not only work as your technical cofounders; we’ll provide you with a full product team at cost in exchange for a small amount of equity. You’ll be entered into the world leading 156 program and after you launch, you’ll be eligible for investment from the BlueChilli Venture Fund.
Apply now and let’s start up!