I'm not sure whether the effectiveness of the federal contracting model can be accurately compared against a start-up, but here goes.
My paying job is that of a systems engineer and it is my responsibility to keep track of meeting customer needs against cost and schedule. This being said, part of my work is to correctly capture customer needs and then make sure that the development and environment teams are able to architect and design according to specs. From a business standpoint, this dual team environment is effective in that the company for whom I work continues to win contracts because the customer's needs are met.
I think the arrangement where the founders are not currently developers would be equally effective as a team of developers as long as they are able to accurately capture and understand their customer's needs prior to the start of coding.
"... I think the arrangement where the founders are not currently developers would be equally effective as a team of developers as long as they are able to accurately capture and understand their customer's needs prior to the start of coding. ..."
I wish all or some customer needs could be fixed at the start of coding but it's not likely to happen. For a start, exactly "who is a startups customers?" You can ask them, but you need a demo first. If you build new products (stuff that by definition has not been built before) a constant dialog with users is required 'at' the time of coding and development not before.
There is one other problem I can think of. Sometimes the customer is not in the position to know what is possible. So it's up to the developer(s) to build something not specified directly by customers. Zenter is an example. In a talk with Crosby & Walker (http://www.grid7.com/podpress_trac/feed/178/0/vCast070807_Ze... Podcast #24 - Founders of Zenter, 46Mb ) it becomes apparent that in developing Zenter it was not merely just a copy of MS Powerpoint. It required knowledge of what existing users require. Then extend it to the Web. Exploiting the Webs unique properties.
The gap of knowing what customers need (upfront or close to upfront) and taking a guess where users need now and in the future is what makes startups "late binding" in needs requirements.
My paying job is that of a systems engineer and it is my responsibility to keep track of meeting customer needs against cost and schedule. This being said, part of my work is to correctly capture customer needs and then make sure that the development and environment teams are able to architect and design according to specs. From a business standpoint, this dual team environment is effective in that the company for whom I work continues to win contracts because the customer's needs are met.
I think the arrangement where the founders are not currently developers would be equally effective as a team of developers as long as they are able to accurately capture and understand their customer's needs prior to the start of coding.