Xcelerate Financial: Fundraising & Startup CFOs 101

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  • STARTUP FUNDRAISING 101 Katherine Gaffney, MBA, CPA Founding Partner, Startup CFO

  • CFO Advisory Financial Planning KPI Dashboards Fundraising Strategy Consulting

    Accounting Board Reports Resource Allocation Investor Relations Taxes

    SERVICES

  • CLIENTS

  • FUNDRAISING 101 OVERVIEW

    Why raise funds? Types of Investors Fundraising process Analyze your Business What investors want to see

  • FRIENDS & FAMILY

    Beware of ruining personal relationships Only accept what someone can afford to lose Convertible loan

  • ANGELS/SUPER ANGELS LESS $$ ($25k-$250k) 3-5 MONTH PROCESS HNW INDIVIDUALS FOCUS ON INDUSTRY EXPERTS

  • MORE $$$$ HIGHER EXPECTATIONS LARGER NETWORK GREATER DILUTION RED TAPE

    VENTURE CAPITAL

  • FUNDING STAGES

    Friends & Family

    Bootstrap

    Operating: Prepaid revenue or AR Financing

    Angels

    Venture Capital

    Venture Debt

    Strategic Investors

    Ideation

    $0

    Launch & Traction

    $1M

    Growth & Scale $5M

    Breakout

    >$5M

    Established Growth >$MM

    FULL-TIME CFO

    PART-TIME CFOADVISOR

  • FUNDRAISING PROCESS BUILD YOUR VALUE PROPOSITION EXPECT 6 MONTH PROCESS USE YOUR NETWORK FOR WARM INVESTOR INTROS BUSINESS DEVELOPMENT PROCESS TOWARDS

    INVESTORS DONT WAIT UNTIL YOU NEED $$$

  • INVESTOR DATINGExpertise

    Brand

    Support

    Network

    Stage

    Location

    Focus

  • Create milestones around your objectives How will you spend the money, Dev/Marketing/G&A? 12-18 months of runway Beware of raising more than you need!

    USE OF FUNDS

  • REQUIRED DOCUMENTSEXECUTIVE SUMMARY PITCH DECK PRODUCT DEMO FINANCIAL MODEL

  • Vision Problem Solution Demo Market Competition

    Team Milestones Traction Financial slide Use of funds

    PITCH DECK

  • Level 2

    Level 1

    FINANCIAL PROJECTIONS: BOTTOM-UP

    MILESTONE FUNDING/STAFFING

    DEVELOPMENT & MARKETING SPEND TO SUPPORT GROWTH INITIATIVES

    USER ACQUISITION/REVENUE BASED ON CHANNEL SPEND

  • FINANCIAL PROJECTIONS: TOP-DOWN

    CALCULATE SHARE of TOTAL REVENUE

    TOTAL MARKET SIZE with FOCUS ON SEGMENT

    OPERATING EXPENSES as % of REVENUE

  • FINANCIAL SLIDES

    Revenue model 5 year projections Funding requirements Use of funds

  • FUNDRAISING IS A JOURNEY NOT A

    DESTINATION

  • ITS ALSO WHEN THE HARD WORK BEGINS.

  • BRINGING IN A CFO EARLY

    IN THE GAME WILL PAY FOR ITSELF MANY TIMES OVER

  • STARTUP CFO ROLES

  • THE ACCOUNTANT Financials: P&L,

    Balance Sheet, Cashflow AP/ Bill payments AR/Collections Taxes: Income,

    Franchise, Sales

  • THE FINANCIER Equity vs Debt Analysis

    Fundraising: Runs deal process

    Obtains loan/lease approval for company growth

    Revenue financing Investor relations

  • THE CLOSER SALES:

    Late Stage involvement

    The Heavy: You can blame your

    CFO for the terms and conditions

  • THE OPERATOR1. STRUCTURE 2. PROCESS 3. REPORTING 4. INSIGHT 5. ACTIONABLE

    STEPS 6. REPEAT &

    ITERATE FOR GROWTH

  • THE COST CUTTER Maximize Spend ROI Knows where to cut where it wont affect the business

    Benchmarks against other startups: Salaries, CAC, Development, Rent,Insurance,Commissions

  • THE CONSIGLIERE Strategize Counsel:

    Initiative prioritization Advise:

    Decision-making Challenge the CEO

    for thorough vetting

  • THE JACK OF ALL TRADES

    HR: Commission plans, compensation packages, policies, culture, events

    IT: Drives information systems

    LEGAL: Contract review

  • THE STARTUP CFO1. Chief Fund Raising Officer 2. Chief Accounting Officer 3. Chief Operations Officer 4. Chief HR Officer 5. Chief I.T. Officer 6. Chief Risk Officer 7. Chief Strategy Officer 8. Chief Negotiation Officer

  • THANK YOU!

    Katherine Gaffney, MBA, CPA katherine@Xceleratefinancial.com

    www.xceleratefinancial.com Instagram: xcelerateyourbusiness

    @xceleratef

    mailto:katherine@Xceleratefinancial.com?subject=