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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…
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Measure to Scale: Key B2B SaaS Metrics
In 2011, Marc Andreessen famously wrote “Software is eating the world.” in his essays published on WSJ. Fast forward a decade, it still holds true. In fact, among the magic seven companies (Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta), four of them are software companies. The beauty of B2B SaaS The beauty of B2B…
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Thriving Through Turbulence: Treasury Management in a Rising Rate Environment
The zero interest rate era started from GFC and extended well into Q1 2022. In a market environment that features zero interest rates and easy access to capital, treasury management takes a back seat as there is no yield really and capital is extremely accessible. However, things started to change very rapidly as we…
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The CFO’s Guide to Building a Winning Tech Stack
The days of “pen and paper” accounting have long gone. In the era of AI, CFO’s role has become increasingly strategic and closely integrated with day-to-day operations. Today, CFOs must leverage the latest technology to keep up with the ever-evolving business landscape. The right technology tools can help CFOs gather and analyze large amounts…
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What Is Liquidation Preference Overhang and How to Manage It
It is not uncommon for founders to walk away from a successful exit empty-handed. How does it happen? The payout of preference shares might simply exceed the exit value. Since the preference shares sit on top of common shares on the distribution table, the management team walks away with nothing. Imagine building a company…