Last week, WSJ published a piece titled Many Startups Operate Without a CFO. That Was a Challenge as SVB Collapsed.
The article underscores the importance of solid financial guidance at startups, and the value of working with a Fractional CFO.
Article Highlights:
Yet while startups often don’t focus on building out their finance function when they are first seeded, industry players say the SVB blowup underscores the need for at least some financial management beyond the guidance they get from their VCs or the banks where they park their cash.
While an independent finance chief or other financial professional might not have been able to steer clear of the SVB blowup entirely, a dedicated financial voice might have encouraged startups to diversify their working capital.
Fractional CFOs, where a finance professional works part time at one or more companies, can help an early-stage growth-focused startup bridge the gap to an in-house finance function.
Read the full article on WSJ.com