With a Series A fundraise, we typically see raise sizes in the $10M+ range. Managing that amount of capital as a founder comes with significant responsibility. That’s why I recommend making your next C-Suite hire a full-time CFO or VP of Finance. If your co-founder has a finance background, this might also be the right moment to formalize that title.
From my experience working with early-stage startups, the co-founder who handles finances often prefers to focus on operations. If that’s the case, it’s important to clarify roles and bring structure to your leadership team.
Why Hire a CFO So Soon?
Some founders—especially those with finance backgrounds—may feel it’s too early for this hire. They might prefer to use that budget for technical roles. I get that. But having an experienced CFO lead your finance department at this stage is critical to your company’s success.
Here’s what you’ll be able to offload with a great CFO on your team:
1. Financial Modeling and Board Reporting
A skilled CFO can break down your unit economics, improve margins, negotiate vendor terms, and field the board’s many requests. Most founders give up a board seat at Series A, which often results in a flood of status update and information rights requests. A CFO can handle investor metrics and reporting—often on demand.
2. Balancing Risk and Vision
Founders embrace risk to scale fast. CFOs typically lean more risk-averse. That contrast can be powerful. A great CFO will pressure test ambitious goals and help ground the team. As Steve Jobs once popularized, CEOs create a “reality distortion field” to drive momentum. The CFO plays the ideal counterbalance.
3. Fundraising Strategy
CFOs help founders strategize and time future raises. They also leverage their networks—especially if they come from venture or banking backgrounds—to line up the right investors. That early legwork can pay off when it’s time to fundraise again.
4. Finance Operations and Department Structure
At Series A, this includes reviewing your back office: accountants (like our team at ShayCPA), fractional CFOs, consultants, financial statement audits, SOC 2 prep, and budgeting/forecasting. A full-time CFO keeps it all aligned.
5. Hiring and Compensation Strategy
Headcount planning is critical—and competitive—at Series A. CFOs help balance hiring goals with budget constraints. During a recent analysis for one client, we saw 85% of expenses tied to labor (65% full-time hires, 20% subcontractors). That’s standard for tech companies at this stage—and a major factor in burn rate and runway.
“Do I Really Need a Full-Time CFO?”
You might think: “I already have a CPA for taxes and books, a fractional CFO for models, and an MBA from (insert Ivy League). We’ve made it this far—why change now?”
Firms like ShayCPA can support with compliance and financial statements. Fractional CFOs can build financial models and offer strategic advice. But there’s no substitute for a full-time leader with skin in the game—usually through equity—who’s 100% focused on your company. When you have multiple players managing finance (bookkeepers, accountants, fractional CFOs, tools like Gusto or Pilot, plus internal ops), you risk duplication, confusion, and dropped balls.
One Example: Delaware Tax Notices
Each year, Delaware’s registered agents send emails asking founders to file a tax return. This is typically part of our service, but founders often respond themselves—then loop us in when they hit roadblocks. With a full-time CFO, that confusion disappears. There’s one clear point of responsibility, and tasks don’t fall through the cracks.
Fiduciary Responsibility Matters
Fractional CFOs and CPA firms typically don’t hold fiduciary responsibility. That means if taxes are mismanaged—say, you miss payroll withholdings—you’re on the hook personally as the founder. A full-time CFO usually assumes fiduciary duty and offers that next level of accountability your company needs.
It’s Easier (and Better) With a CFO
From our perspective, working with companies that have a CFO is smoother and more efficient. And the data supports it—startups that bring on a CFO early perform better over time.
Roughly half of our clients hire a CFO or VP of Finance at Series A. The other half wait until Series B or later. If you’re raising your Series A now, be sure to budget for a full-time CFO. It could be one of the most valuable hires you make.
Disclaimer:
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