Fractional CFO for Fundraising
Fundraising is a full-time job on top of your full-time job. A fractional CFO handles the financial heavy lifting so you can focus on telling your story.
Key Takeaways
- •Start financial preparation 3-6 months before actively raising
- •Investors expect a defensible model with clear unit economics
- •CFO support helps you answer tough financial questions confidently
- •Post-raise, a CFO helps you deploy capital effectively
Investors see hundreds of pitches. The companies that stand out have their financial story buttoned up: clean books, clear metrics, defensible projections, and founders who can answer tough questions without hesitation.
A fractional CFO with fundraising experience brings credibility and preparation that signals professionalism. They've seen what works with investors and can help you present your company in the best possible light—while being honest about risks and challenges.
Pre-Raise Financial Preparation
The work to raise successfully starts well before your first investor meeting:
Clean Up Financials
- Monthly close process producing accurate statements
- Revenue recognition aligned with subscription terms
- Expense categorization that shows operating leverage
- Historical reconciliation of all accounts
- 12-24 months of clean historical data
Establish Metrics Tracking
- MRR/ARR with proper calculation methodology
- Cohort analysis showing retention and expansion
- CAC and payback period by channel
- LTV calculations with documented assumptions
- Burn rate and runway tracking
Build Financial Model
- 3-5 year projections with monthly detail
- Driver-based model tied to operating metrics
- Multiple scenarios (base, upside, downside)
- Clear assumptions with supporting logic
- Use of funds and capital deployment plan
Model as Story
Your financial model should tell the same story as your pitch deck. Every line item should connect to your narrative: customer growth, product roadmap, go-to-market expansion. Numbers without story—or story without numbers—will get challenged.
During the Fundraise
Once you're actively raising, a fractional CFO provides real-time support:
Investor Prep
Practice financial Q&A, anticipate tough questions, prepare backup slides for deep dives.
Data Room Management
Organize financials, cap table, contracts, and other documents investors will request.
Model Updates
Keep projections current with latest actuals; respond to investor modeling requests.
Term Sheet Analysis
Evaluate economic and control terms; model dilution scenarios; compare offers.
Common Investor Questions a CFO Helps Answer
- "Walk me through your unit economics."
- "What are your CAC payback and LTV:CAC by channel?"
- "Why does your model show X% growth? What drives that?"
- "What happens if growth is 50% slower than projected?"
- "How do you get to profitability?"
- "What are your biggest financial risks?"
- "How will you deploy this capital?"
Post-Raise Financial Management
Raising money is just the beginning. Post-raise, a fractional CFO helps you deploy capital effectively and meet investor expectations:
Capital Deployment
Translate your use of funds into a hiring plan, marketing budget, and operational roadmap. Monitor spend vs. plan and adjust as you learn what's working.
Investor Reporting
Establish monthly or quarterly investor update cadence. Report on key metrics, milestones achieved, challenges, and asks of your investors.
Board Preparation
If you took on board members, prepare board materials, financial packages, and strategic discussion topics. Your CFO can help prep you for productive board meetings.
Next Round Planning
Start thinking about next round 9-12 months before you need it. What metrics do you need to hit? What milestones will matter to Series B investors?
CFO Needs by Funding Stage
| Stage | CFO Needs | Engagement Type |
|---|---|---|
| Pre-Seed / Angel | Basic model, clean books, cap table | Project (few weeks) |
| Seed | Model, metrics, investor prep | Project or light retainer |
| Series A | Full financial infrastructure, ongoing support | Monthly retainer |
| Series B+ | Sophisticated FP&A, board support | Fractional or transition to full-time |
The Series A Gap
Series A is where many companies struggle. Seed investors may not have required sophisticated financials, but Series A investors expect real metrics and financial discipline. Companies that wait until they're fundraising often find it's too late to build what's needed.
What to Look for in a Fundraising CFO
Fundraising Experience
Has supported companies through multiple raises. Knows what investors look for and common pitfalls.
Metrics Fluency
Understands SaaS/startup metrics deeply. Can calculate, explain, and benchmark your numbers.
Modeling Skills
Can build or refine your financial model to be investor-grade—defensible and tied to strategy.
Communication
Can translate complex financials for investors and help you tell your story with numbers.
Frequently Asked Questions
When should I engage a CFO for fundraising?
Ideally 3-6 months before you plan to start actively raising. This gives time to clean up financials, build a solid model, establish metrics tracking, and practice your story. Engaging during an active raise is possible but suboptimal—you'll be learning while pitching.
What do investors expect from my financial model?
A 3-5 year projection with monthly detail for year 1, quarterly for year 2, annual thereafter. Model should be driver-based (tied to business metrics), include multiple scenarios, and clearly show the path to profitability or next milestone. It should be defensible—every assumption should have logic behind it.
Do I need a CFO for a seed round?
For seed, you likely need CFO help for a few weeks, not ongoing engagement. Prep your model, clean up your books, and practice financial Q&A. For Series A+, ongoing fractional CFO support is more valuable as investors expect more sophisticated financial management.
What financial diligence do investors conduct?
Varies by stage and investor. Seed investors may only review high-level financials. Series A+ investors typically review: historical financials, cohort data, unit economics, cap table, burn rate, and the financial model. Later stages may include quality of earnings analysis.
Related Resources
ARR
Key fundraising metric
LTV:CAC Ratio
Unit economics explained
Cap Table
Equity management
Board Deck Template
Post-raise reporting
Preparing to Raise?
Get your financials investor-ready with fractional CFO support. We'll help you build the foundation for a successful raise.
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