What Fractional CFOs Can Learn from an Investor-Turned-CFO:
Stephen Findlay
Most founders don’t start their journey thinking about finance, but at some point, financial strategy becomes critical to survival. Often, it's the job of the fractional CFO to help founders navigate that shift without losing focus on growth. So it was great to sit down with Stephen Findlay who has sat on both sides of the table, as a founder raising capital, then as a VC, and now back on the founders side as a fractional CFO.
But what can fractional CFOs do to guide founders through this transition more effectively?
The Founders’ Finance Trap: When They Get Bogged Down
A disjointed finance function can quickly become a bottleneck, slowing founders down at a key time when they need to move fast. If they are fundraising, this alone is already a full-time job, a clunky ‘FinOps’ process only adds unnecessary pain to all involved. Founders can find themselves buried in cash flow models or looking at out of date forecasts. Investors don’t want founders wrangling spreadsheets, they want them executing on product or sales. This is the time to invest in a team that can come in and make things flow. Solid bookkeeping, efficient processes and a Chart of Accounts that matches the forecast model.
The fractional CFO is a key part of the solution here. Enabling the founder to stay focused on what moves the needle. The CEO knows one of her responsibilities is not to run out of cash, so an accurate model and ideally a reliable cash forecast are a core part of the output from the underlying system.
Fundraising Isn’t the End Goal, It’s Just One Tool
For many founders, fundraising can feel like the ultimate milestone, the moment their financial worries disappear. But of course, raising capital is just one aspect of a broader financial strategy. Without clear financial leadership, even well-funded startups can run into trouble, facing cash flow challenges and uncertainty sooner than they expect.
Today, the market is moving more slowly, and investors are being more cautious. We’re seeing profitability potential being prioritised over aggressive growth. If a startup doesn’t have a well-structured financial strategy in place, funding alone won’t save it. By allocating capital efficiently businesses can extend their runway and ensure they stay investor-ready or acquisition-ready for future rounds. The CFO can really help them see the bigger picture beyond just "When is our next round?"
The 13-Week Rolling Cash Flow: A CFO’s Best Tool
If there’s one financial tool we’re passionate every startup should implement, it’s a 13-week rolling cash flow model. This isn’t just about not running out of cash, it’s about giving founders an understanding of their financial trajectory and allowing them to explore multiple scenarios as situations move in real-time.
“The first thing we do is we look at the cash flow forecasts…we're looking at the 13-week rolling cash flow forecast, I do not want any surprises. As a fractional CFO, one of the worst things I can do is say, oh, sorry, I didn't realise, but we're running out of money next week”
Fundraising timelines are unpredictable, and startup burn rates can fluctuate rapidly. If a CEO doesn’t have a strong grasp on their cash position at all times, they are operating in the dark. Obviously getting to this point is easier said than done. But setting out the course for the work involved to get to this point, and it’s not always easy. As a CFO our day rate isn’t cheap. Having a team who can help with the leg work can be a huge cost saving to the business as we direct and set the standard. Ultimately, one of the greatest values we provide to founders is ensuring they never wake up to a preventable cash crisis.
The Mistakes I Made as a Founder (and How CFOs Can Help Others Avoid Them)
Looking back, there are a few critical mistakes I made as a founder, mistakes that I now see repeating in the startups I work with today. These are:
1️⃣ Spending too much time on financial admin: Early on, I tried to handle everything myself. I had a fantastic finance manager who helped me out and was my point of contact for many financial tasks, but I still found myself deep in the weeds of financial admin. Looking back, I realise that:
"Had there been fractional CFOs around [in 2013], it probably would have made sense for me to bring one in at that time because I found myself doing stuff that took me away from the two key focuses which, in my opinion, what a CEO should be doing, which is either selling or fundraising."
2️⃣ Underestimating how long fundraising takes. Many founders assume they’ll secure funding in a matter of months, but the reality is far less predictable. The market moves in cycles, and even in tougher times, opportunities exist for those who plan ahead. Fundraising isn’t a linear process, you often hear stories of founders being turned away over 100 times before finally landing the investment that takes their company to the next level. If they’re raising every 12 to 18 months, every six months or so, they should be reassessing: is their deck up to date? Do their metrics reflect progress? Where is the next round of cash coming from? As a fractional CFO, your role is to ensure they’re always prepared for the next funding opportunity, rather than scrambling at the last minute.
3️⃣ Not having a contingency plan for cash flow shortages.
One of the first things I do when working with a startup is review the cash flow forecast and cross-check it with bank accounts. In the past, cash flow forecasting relied on Excel, but that approach had serious limitations.
A solid contingency plan isn’t just about spotting risks, it’s about ensuring founders have the time and space to act before a cash crisis arises.
Fractional CFOs exist to help founders avoid these exact pitfalls. By stepping in early and establishing a strong financial foundation, you enable startups to operate from a place of strength rather than constant firefighting.
Final Thoughts
Startups don’t just need someone to crunch the numbers, they need financial leadership. A great fractional CFO does more than maintain financial reports. We provide strategic guidance, help founders think long-term, and ensure they don’t get lost in the weeds of financial admin.
Ultimately, if a fractional CFO has done their job right, by the time a company reaches Series B or C, they should have the financial structure and strategy in place to bring on a full-time CFO seamlessly.
Until then, your role is clear: help founders survive, scale, and build a resilient financial foundation in an unpredictable market.
🎙️Ready to learn more?
If you enjoyed these insights, dive deeper by listening to the full episode of The New F*Word featuring Stephen Findlay - listen here.
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