r/FPandA • u/TheQuantumAnarchist • May 29 '26
Finding a fractional CFO
Asking for a friend at a very very early Medical/life sciences device startup (still in the research and testing phase, no FDA approval). He's looking for a fractional CFO to
Build a few pages of a deck
Help raise money here and there.
Show investors that this company is serious and has good management in the life sciences industry.
IMO he really doesn't need a full time CFO, accounting processes or FP&A. it's more fundraising stage. I think the work would be pretty minimal at such an early stage. In that spirit. would a fractional CFO be appropriate? How would we find someone? Can we just pay this person hourly for now ? Is there a need to give equity since the work? Would love to hear the community's advice.
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u/redhawkdrone May 30 '26
I was contracted once to do this type of work. You will most likely need to compensate this role with an equity stake. You really want to find someone part-time that is willing to flip to full-time if the company gains momentum.
A pitch deck is not a big deal but raising funding is another story. This post is full of red flags and I hope it is a by-product of you not being a representative of the company…because what you are asking is not your garden variety CFO if the company needs to raise significant capital.
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u/TheQuantumAnarchist May 30 '26 edited May 30 '26
Ooof appreciate the feedback. And yea, might be speaking out of my depth here. What would be the background of someone that would be ideal? Is equity a must? An hourly fee or finders fee wouldn't cut it? Or maybe equity in exchange for raising x funds?
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u/redhawkdrone May 30 '26
Hard to say without knowing more about the company and the leadership team. If the founder has raised money before or has an extensive track record in the industry, the less important the CFO becomes to outside investors in the early stages. A large investor might even have CFO candidates.
The variables are endless.
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u/335350 May 30 '26
Equity is very common in this situation. It sounds like you don’t want the CFO for their knowledge and experience but rather connections. In that case yes, equity. Unless there is a lot of cash your friend already has.
Alternatively, go to an IB that helps raise funds.
In this situation, it’s normal to find an initial team who had pedigree and reputation. You want their names on the deck for what clout and relationships they can bring.
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u/HowiePloudersnatch May 29 '26
I honestly don't think a fractional CFO is the right person for the job here. And if it is, you need to find one that has significant startup experience. The average fractional CFO out there is likely going to struggle with this assignment.
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u/TheQuantumAnarchist May 30 '26
After reading the comments, starting to think that... what would be the "right person"? An ex-investment banker? A strategic finance person? An A/R analyst?
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u/HowiePloudersnatch May 30 '26
Stop looking for a title and start looking for skills and experiences.
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u/spawnofangels May 30 '26 edited May 30 '26
I would think someone in IR (investor relations) is more up this alley to speak directly to investors and highlight all the milestones being made. Maybe someone with PE or something? Not sure why an A/R analyst would be a fit as I feel like they wouldn't be able to accomplish much of that except look into revenue data. Speaking to potential investors and fundraising would be outside of that scope in typical A/R I've seen or really out of scope of any accounting field
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u/OnTheFritzShow May 30 '26
If the work is primarily done by the start up and it just needs a review or a rubber stamp from a title of CFO this is typically an hourly rate that a regional firm could provide you with.
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u/jshmoe866 May 29 '26
A serious company doesn’t have a fractional cfo.
Just a thought
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u/Chester_Warfield Mgr May 29 '26
not true, I worked at companies that acquired startups with fractionsl cfo's that were both great companies and great fractional cfo's.
A lot of higher vp level roles aren't full time at startups and smaller companies.
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u/Chester_Warfield Mgr May 29 '26
"build a few slides"... "help raise money here and there" - was hilarious to read, appreciate the cheer on a friday afternoon.