Whether your startup is trying to secure a seed investment or is preparing for a Series C funding round, having the proper finance & accounting operations in place can make all the difference.
During the early stages of your startup, your books need to be accurate and your supporting financial analyses should showcase your company’s growth story. However, if you are like most startups, you are strapped for cash and do not need a full-time CFO. This is where a Fractional CFO is the perfect solution.
A Fractional CFO can provide the following benefits during the fundraising process:
Ensure Your Financials are Organized and Accurate
Investors want to see accurate and organized financials before they invest. A Fractional CFO will conduct a ‘historical accounting clean-up’ before a fundraising round, which will put your startup in the best position to raise the capital you need.
Avoid Unnecessary Delays
Your startup is raising money because you need cash to keep growing! Any delays due to inaccurate or unorganized financials could cause disruptions to operations and discourage investors and lenders.
Expert Support Throughout the Process
A Fractional CFO will bridge the gaps between your startup, potential investors, and due diligence providers during the fundraising process. Companies often underestimate the time and effort needed to complete the due diligence process. Having an expert on your side will make the fundraising process easier and less stressful for all involved.
Financial Reporting and Analyses for Your New Investors
After you close your fundraising round, your new investors will expect a certain level of financial sophistication. You will likely need to provide monthly financial reports and analyses. A Fractional CFO will make sure your firm is delivering the necessary reports to investors while you focus on your business.
If you would like to learn more about how CFOx’s Fractional CFO services can help your startup during the fundraising process, please schedule a free consultation via email ([email protected]) or by scheduling a call directly on our website homepage.