The Evolution of the CFO Role in Scaling Tech Startups

Just like other C-suite roles essential to accelerating a tech business, the CFO role has evolved significantly over the past few years. As the challenges in today’s market continue to grow, founders must understand the critical value of a growth-focused CFO to support their scaling journey.

Think & Grow Partner Dan Spencer explores the unique contributions a growth-focused CFO can bring to your business and highlights how this role differs from a traditional CFO, particularly when scaling beyond Series A and transitioning into strategic decision-making and commercialisation.

What Does a Typical Finance Leader at Series A Look Like?

Before scaling, having your financial “house in order” is essential. Many early-stage founders believe they can manage the P&L themselves, but this is often flagged as a concern by investors and board members preparing for the next funding round.

In today’s market, having a clear view of financial metrics is critical. Founders often lack the time or expertise to manage this, making it crucial to hire a Head of Finance, Finance Director, or engage a fractional CFO to establish essential systems and processes.

A Series A finance leader typically has a background in a Big 4 accounting firm, is CPA-chartered, and has transitioned into an industry role. They are instrumental in ensuring operational health and aligning budgets with the business’s strategic goals.

Why Founders Should Look Toward a Growth-Focused CFO at Series B

To Shape the Financial Strategy for Growth
Scaling beyond Series A brings complexity. A growth-focused CFO applies a commercial lens to all strategic decisions, including new market entry, M&A opportunities, and partnerships, ensuring the business remains on track to achieve long-term goals.

To Drive Operational Efficiency While Mitigating Risks
Growth-focused CFOs excel at balancing business performance with risk management. They evaluate core business drivers, sequence strategic bets, and ensure compliance with global financial regulations, especially during international expansion.

Their proactive approach to risk mitigation and streamlined financial workflows relieves founders from operational distractions, enabling them to focus on vision and strategy.

To Raise the Company’s Profile and Attract Future Funding
A growth-focused CFO is pivotal in enhancing the company’s profile within the global investor community. They cultivate relationships with potential investors, keeping them informed about the business’s trajectory.

For example, if scaling into the US, the CFO might secure funding partners in that market, aligning capital opportunities with new ecosystems and growth ambitions.

The Typical Background of a Growth-Focused CFO

A growth-focused CFO may come from a traditional finance background, with experience in scaling businesses to exit or IPO. Alternatively, they might have a transactional background, such as investment banking or private equity, bringing deep expertise in capital markets.

Regardless of their background, key traits include:

• Strategic and commercial acumen.
• Transactional experience (e.g., M&A, exits).
• Mastery of capital markets.
• Exceptional communication skills for stakeholder management.
• The ability to lead and inspire high-performing finance teams.
• Thriving in fast-paced, growth-oriented environments.

What Type of CFO Does Your Business Need?

Whether your startup requires a traditional CFO for operational stability or a growth-focused CFO to drive strategic expansion, hiring the right leader can unlock your business's full potential.

If you want to learn more about how Think & Grow can help you hire a CFO or other leadership roles, contact us here today!

‍