Job of a startup CFO when there is no fundraising round?

6 points by hynco ↗ HN
What are the jobs of a startup CFO when there is no fundraising round?

I've been following quite a while and would be great to exchange with you if anyone has experience or articles to share. Thanks!

6 comments

[ 2.9 ms ] story [ 16.2 ms ] thread
Get fundraising.

Maintain healthy cash flow

Monitor kpis

Manage receivables and expenses

Manage assets and make sure company is structured to be valuable in a potential acquisition scenario

Thanks. Also what I have in mind. Just wondering if there would be large wholes in-between fundraising rounds.
IME startups don't get a CFO until they're preparing to go public or be acquired. In the meantime you can hire a fractional CFO for raising rounds and day to day needs.
Seeing to it that the founders don't splash the cash on Ferraris and Yachts when they ought to be investing that money in the startup!
Here's a portion of the write-up on https://siliconcfo.com/fractional-cfo/

Apart from peace-of-mind, Fractional CFOs can add value to a business in a wide variety of ways. Here are some primary examples of what we’ve seen at siliconCFO:

Fundraising connections. Many Fractional CFOs have large networks of angel investors, family firms, venture capital firms, private equity firms, and other investors. Don’t rule out the possibility of giving your Fractional CFO a key role in fundraising for your business!

Expense management. A classic example of CFO services is managing expenses across an organization and negotiating deals to lower costs.

An eye on cash flow and runway. Every CFO is responsible for keeping an eye on their firm’s cash flow and runway, making sure they have enough cash on hand to make payroll or invest appropriately.

Keep the books up to date and clean. This is undervalued by first-time founders, but most serial entrepreneurs understand how important this is and how much money it can cost you to not keep your books up to date and clean.

Best practices. Various firms come to siliconCFO in search for someone who can simply bring best practices with them and implement them at their quickly growing startup. This can include systems, procedures, values, and more.

Expert analysis and strategic planning. Financial Planning and Analysis (FP&A) is a key aspect of the CFO role, and Fractional CFOs are no exception. In fact, this might be the most critical aspect of a Fractional CFO’s role within an organization and can save your butt in countless situations.

Great points, good article.