As venture-capital firms pour more money into early-stage startups, the demand for fractional CFOs is increasing. Many startups have basic accounting needs and are not yet ready to have a full time CFO managing their finance, but they can still benefit tremendously from the experience and strategy that a part-time CFO can bring to the table – especially as they start to receive funding. “[Startups] increasingly need someone to fill the gap when more complex financial questions arise,” according to the Wall Street Journal Article, “Demand for Part Time CFOs Heats Up As Startups Raise More Money.”
When to Hire a Fractional CFO
According to the article, the sooner you bring in a fractional CFO the better. They can help establish processes, make operational decisions, and help the company stay focused on building sustainable value. But, once startups start getting investor funding, it is essential that they recruit a fractional CFO. An operating partner at investment firm Bessemer Venture Partners said he always advises founders of early-stage firms to hire a part-time CFO so they can focus on building and selling their products instead of managing the finances.
“When I find a good fractional CFO, I hold onto them. It’s like gold,” said Hope Cochran. Learn more about the benefits that fractional CFOs bring to startups here.