- Pre-Series A startups that brought in afractional CFOraised 27% larger rounds (Bespoke VC Ops Report 2024).
- Seven red-flag symptoms: runaway burn, due-diligence chaos, gross-margin fog, pricing confusion, covenant breaches, zero finance voice at board, no forward-looking model.
Comparevetted fractional CFOs on Sam’s List!
The 7 Signs
You rely on bank balance to gauge runway.
Investors pick apart your KPI math.
Gross margin shifts 5 points month over month with no explanation.
Pricing model feels like a dart board.
Loan covenants almost tripped last quarter.
No one owns finance narratives at board meetings.
Your “model” is a 12-tab Google Sheet no one trusts.
Mini Cost-Benefit Table
| Option | Annual Cost | Typical ROI outcome |
|---|---|---|
| DIY Founder | $0 cash / huge time | Burn-rate blind spots, smaller rounds |
| Fractional CFO | $60 K–$120 K | Larger raise, 5–8 % gross-margin lift |
| Full-time CFO | $250 K–$400 K + equity | Needed at $20 M+ ARR |
Frequently Asked Questions
When should you hire a fractional CFO?
- Once burn >$100 K/month or 9-month runway left.
- Earlier if raising a priced round or debt with covenants.
Fractional CFO vs. controller—what’s the difference?
- Controllers close books; CFOs forecast and strategize.
- Controllers look backward; CFOs tell you where cash will be.
Case Studies
A DTC skincare brand with 35% gross margin brought in afractional CFO, renegotiated 3PL contracts, and lifted margin to 42% within six months—worth $380K annually.
Red Flags When Interviewing
- Specializes only in enterprise ERP—no startup SaaS or DTC.
- Guarantees they can “raise your round.”
- Won’t share sample model.
Readiness Checklist
☐ GAAP P&L closed monthly
☐ Founder spends > 8 hrs/week in spreadsheets
☐ Burn projection < 9 months
☐ Upcoming fund-raise or debt covenant looming