s/CEO/Sr. Product Manager/g
s/CTO/Sr. Software Engineer/g s/CEO/Sr. Product Manager/g
s/CTO/Sr. Software Engineer/gThat doesn't make any sense whatsoever (beyond being dishonest, it would likely be surfaced in reference checks and stop a hire).
I'd see the startup experience as very positive, assuming they could articulate why the startup failed and learned from the experience. There's many startup CEO's who would make (and are) great sales, strategy, or product leaders, and CTO's who would be great fits for engineers, architects, or engineering managers.
The title should reflect what the person actually did, also the CV is supposed to help find a job not self sabotage.
Saying to be a CTO when you where coding all day seems a bit fantasious and inacurate anyway. senior developer/team lead reflects much more the reality of what the person actually did in the job.
I was in no way suggesting withholding any detail in the interview, or even the resume. Of course you should be completely honest about your experience. Just don't use lame titles, that turn people off, when there's not even a good reason to.