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Why Raising at a High Valuation Early On Isn’t Always a Good Idea
In the fast-paced world of startups, securing a high valuation can seem like the ultimate achievement. However, as “Silicon Valley” Season 2, Episode 1 so aptly illustrates, it’s not always the best strategy for long-term success. In this episode, Richard Hendricks and the Pied Piper team are faced with a dilemma: they receive an…
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Five Tips For Building Effective Cash Flow Management
I remember one discovery call I had with an early-stage founder who, quite honestly, told me he does all of his cash flow analysis in his head. I admire the brain power, but it is not something you should rely on if you are aiming for accelerated growth. Here are five tips to set…
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What Is a Fractional CFO?
As the world catches up on the fractional CXO trend, there is some confusion in the market. For example, it is often confused with an advisor role. Therefore I have decided to dedicate a long post on this topic. The concept of a fractional CFO (Chief Financial Officer) mostly exists in the startup and…
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The Five Common Mistakes SMBs Make With Their Finances
Mismanaging finances is the number one reason small businesses fail. Without saying, ensuring the financial health of a SMB is crucial for its longevity and success. However, many SMBs fall into common traps that can jeopardize their operations. Here are the top five financial mistakes that SMBs often make: Not Keeping Up with Bookkeeping…
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Have A Winning Strategy
The stereotype of a finance person is a bean counter — someone who keeps track of the numbers of running a business. The main function of a finance department has long been considered as bookkeeping. However, the role of finance in business extends far beyond keeping track of numbers. It can, and should play…
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Getting The Basics Right
One Techcrunch article caught my attention recently. Fisker, the EV startup is struggling to keep track of its payments (both receivable and payable) as it embraces accelerated growth. In some cases, it delivered vehicles without collecting payments. What a way to win initial customers! As a startup builder who is building a digital product…
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Conversion Math: The Devil Is In The Details
You have raised seed via SAFE/Convertible notes and you are now converting them to equity in your first venture round. The convertible agreement is standard. There is a discount rate, a valuation cap and maybe a clause for convertible overhang (if you don’t have the clause or don’t know what this is, read more…
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Live or Die: The Importance of Cashflow Design
Cash flow is the bloodline of any business, but for early-stage startups with limited access to financing options, it is even more crucial. However, more often than not, the first place the founders look to improve cashflows is payment terms. Yet payment term is only one small piece of the puzzle. In this post…
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Front Run 2024
As the new year approaches, many of us are reflecting on the past year and setting goals for the future. For a CFO of an early-stage startup, this is an especially important time to plan ahead and prepare for the coming year. With only 11 days left in 2023, what are some of the…
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How To Create A Successful Operating Budget
It is that season again. No, I am not talking about Thanksgiving or Christmas. I am talking about the year-end budget season. For all finance professionals, this is surely the more exciting one! Yet, more often than not, it turns out to be a hollow process that we follow without achieving the goals it…