Nikunj Kanodia’s Post

Benefits of Having a Virtual CFO for Startups - Expertise: Access to experienced financial expertise and guidance from a seasoned CFO, which can help navigate complex financial situations and make informed decisions. - Cost Savings: Cost-effective compared to hiring a full-time CFO, with the flexibility to scale up or down as needed. - Scalability: Scalable services that can adapt to the growing needs of a startup, providing support during fundraising, mergers and acquisitions, and global expansion. - Flexibility: Flexible working hours and deliverables that can be tailored to the specific needs of a startup, with the option to increase or decrease services as required. - Compliance: Ensuring compliance with financial regulations, tax laws, and corporate governance norms, reducing the risk of legal and financial pitfalls. - Fundraising: Assistance with fundraising initiatives, including identifying suitable investment opportunities and preparing for investor engagements. - Risk Management: Identification and management of financial risks, implementation of robust risk control strategies, and protection from legal and financial pitfalls. - Financial Reporting: Preparation of accurate financial statements, ensuring compliance with accounting standards and regulatory requirements. - Taxation: Tax planning strategies, management of GST and other tax filings, and optimization of tax benefits while ensuring compliance with tax laws. - Networking: Access to a network of contacts and industry-specific knowledge, providing valuable insights and opportunities Thus, a Virtual CFO can provide startups with the financial expertise and guidance they need to navigate complex situations, make informed decisions, and drive sustainable growth. By leveraging the benefits of Virtual CFO services, startups can optimize their financial strategies, ensure compliance, and focus on scaling their operations effectively. We Dudhoria Consultancy Services Pvt Ltd are a call away. 9836388555/ 8017885567 #startups #founders #director #managingdirector #kolkata #taxation #accounts #finance #startup #business

My thoughts on Financial Modelling. Having worked with few Startups early stage and growth stage companies both on Financial Modelling and Business Valuation assignments. I have observed that many of them are not interested in performing the Financial Modelling scientifically and Strategically because either they are busy or they don't think it is important. This is one of the great opportunities to invest for founders and other senior leadership time in a serious Financial Modelling activity either with the in-house CFO or hire the expert to carry out the same Many start-ups don't have CFO on board or even they have not hired CFO services even after starting good revenues for few years. This is also very dangerous for a company in a long run. Coming back to Financial modelling, all the startup co-founders and growth companies should invest in Financial Planning which helps to build their strategy on various fronts including Marketing, Operations, Manpower, Org structure, Governance, Facilities, Legal, Technology and even Mission, Vision and Values. So the right Financial Modelling excercise will essentially cover all of these if done by the expert and experienced professional. This in turn will help build a great proactive entrepreneur community in India focusing on sustainable growth and build a big billion dollar company contributing to the self and the country I welcome my friends and community and the expert thoughts on this. #financialplanning #financialmodelling #startupindia #enterpreneurship

The right CFO can change everything for your company: in a good way. Here's one such example. Vikas Ralhan is the Chief Financial Officer (CFO) of LocoNav who demonstrates successful financial leadership in the Indian startup ecosystem. Under his guidance, LocoNav has achieved significant milestones, particularly in the logistics technology sector. Ralhan emphasizes the importance of developing comprehensive financial strategies that align with the company's growth objectives. His approach includes: - Meticulous budgeting - Forecasting - Reporting All of which are crucial for navigating the complexities of a startup environment. Under his leadership, LocoNav has focused on critical financial metrics such as: - Revenue growth - Customer acquisition cost (CAC) - Gross margin For instance, by optimizing these metrics, LocoNav successfully raised $37 million in a funding round led by Accel Partners and others in 2021! This funding was strategically allocated to enhance product development and expand market reach. Ralhan has also implemented rigorous cash flow management practices. By monitoring operational cash flows and maintaining a healthy burn rate, LocoNav has been able to extend its financial runway significantly. → Funding achievements: Successfully raised $37 million in 2021. → Revenue growth: Achieved a revenue increase of over 200% year-on-year. → Market expansion: Expanded operations to over 100 cities across India within two years of his tenure. Vikas Ralhan's strategic vision and execution have positioned LocoNav as a leader in the logistics tech space, demonstrating how effective CFO leadership can drive substantial growth and operational success in a competitive market. If you are an early startup and don't have your finances figured out, don't worry because that's what we are here to help you with. Send me a message and let me explain how we can fix your company's finances. 📩 #CFO #logistics #finance #startup #india

Virtual CFO is a trending profession among western finance professionals, however it is novel among Asians. Who is a Virtual CFO (VCFO)? Virtual CFO is CFO services on demand. If your business requires the expertise and strategic advice of a CFO but is not prepared to commit to a full-time employee, Virtual CFO, offers the flexibility without compromising on quality. Businesses would no longer need to hire a full time/permanent CFO with VCFO on board. The key differentiator lies in the ability of VCFO to provide the essential services at a fraction of the cost, making financial excellence accessible to businesses, especially small medium enterprises (SME) and startups. In my next post, I'll share how SME and startups can benefit by having a VCFO. --------------------- Hi, I'm a PhD candidate researching on the adoption of Virtual CFO among Malaysian businesses. Reaching out to business owners creating awareness on VCFO. #virtualcfo #VCFO #financeprofessional #accountant #SME #startup #malaysia #business #finance #transformation

Since I founded Spice Route Finance in 2016, I’ve had the opportunity to interact with numerous founders, investors, and VCs, and one thing has become abundantly clear: there’s a significant gap in the quality and scalability of financial services available to startups. What I’ve observed is that finance is no longer just about having a virtual CFO or an accountant; it requires a multi-layered approach, one that evolves to support businesses as they scale. Over time, we’ve built a finance team that operates like the CFO office of a large corporate but designed to meet the unique needs of startups. I believe that a strong middle layer—such as a financial controller or analyst—combined with a visionary CFO, is essential to driving sustainable growth. And we take pride in being one of the few firms in India that offers this comprehensive support.   Our CFO Office is designed with a unique three-layered approach that scales with companies as they grow:   1. Financial Controllership: Ensures meticulous accounting, timely financial reporting, and seamless audits. 2. FP&A Support: Drives performance predictability, profitability analysis, and cross-functional alignment to keep growth profitable. 3. CFO Partner: Offers the strategic foresight and leadership necessary for closing high-stakes deals, investor communications, and business negotiations.   Each layer works cohesively to transform financial operations into a growth engine. With our CFO Office, companies access unparalleled support, whether they’re scaling up, refining their business model, or preparing for the next phase of growth. This structure is the foundation of impactful decision-making and sustainable success. Spice Route Finance Spice Route Finance UK #CFOOffice #Startup #BusinessGrowth #SpiceRouteFinance

Recruiting requirements for B2B SaaS companies. Looking in a similar way at the B2B SaaS companies, more of these deals were likely to be Seed or Series A deals than was the case for the Fintechs, so more emphasis would likely be placed on finding a commercially savvy CFO who can cope with some level of uncertainty. There were a lot more B2B SaaS deals (413 vs 222 for fintechs), but the average deal size was only €7.5m (€3.1bn / 413 deals = €7.5m average deal size), and the total amount raised of €3.1bn was considerably less than the €6bn raised for Fintech firms in Q2 of 2024 (€6bn / 222 deals = €27m average deal size for the fintechs). On one hand, it might very well be a lot cheaper to get to a Series A stage (where the focus is on validating the business model and unit economics) in an unregulated B2B SaaS business, than in a regulated Fintech, so perhaps the typical Series A round size is lower than the previously assumed range of €9m to €25m, but either way, a significantly higher proportion of these deals are likely to be in the Series A or even Seed range than for the Fintech deals. Given the lower costs of starting up such businesses, it would make sense that investors would be willing to fund more of these in order to find a few that are going to turn into unicorns further down the road. From a CFO recruitment perspective, if many of these are Seed or Series A businesses this should mean that there is greater emphasis on having a commercially savvy CFO, who can deal with building financial models using the limited data available, and create highly flexible models that enable senior management to consider and test out a number of alternative strategies for building a profitable business.  It is of course still very handy to also find a CFO who will be able to help automate processes, improve efficiencies and analyse much larger data sets, so they are also able to meet the needs of the business as it transitions to Series B further down the line. #fintech #recruiting #executivesearch

*** TL;DR - Founders, make your numbers a priority in 2024 *** #Dreamteam, we have a problem. Less than 20% of high growth, pre-series A tech companies in Australia have a full time or part time CFO. And I think, at least in capital constrained markets like Australia, this is a big reason why so many startups fail. From the numbers, we know that startups with a full time/part-time CFO are: ✅ More likely to raise investment (if they want to), ✅ More likely to scale faster, and ✅ Less likely run out of cash. Having spent time with some of the best finance leaders in tech across Australia, this is the value they bring to their founders/management teams: 😍 Decrease the cognitive load and financial risk on founders 📈 Prioritise strategic and commercial decisions over perfect financials 😇 Increase confidence of both founders + investors during fundraising 📣 Effectively communicate numbers (using visuals and stories) 🙆♀️ Make sure pricing strategy + business model are fit for purpose 💰 Managed cash flow weekly, and provide forecasts for managements to make proactive (rather than reactive) decisions 💲 Co-design company budgets, forecasts and KPI's + metrics 🚀 Dashboard milestones and success metrics for company ✅ Explore ESOP and incentive structures for employees and management 💯 Manage risk and setup systems/processes with governance in mind 🙌 Run the company's banking + treasury functions 🥇 Manage relationships with external accountants, R&D and finance providers 🔥 Provide key internal valuation tracking ⚡ Most importantly - increase the founder's confidence in their numbers and decision making. The number one reason founders give for not hiring a CFO sooner? Cost. That's where we come in. Over the last 4 months we've worked with more than 20 high growth tech companies across a range of tech verticals. We've worked on: ✅ 5 x successful capital raises ✅ 3 x ESOP Plans ✅ 2 x complex cap table restructures ✅ 2 x successful international market expansions ✅ 1 x exit to US PE ❗ 1 x significant RIF Our goal with Planet Startup is to be the fractional CFO you need now, so that you can build the company (and the internal finance team) you want in the future. So, if you're a pre-series A company looking to raise capital and scale, or a 7 figure tech company wanting to bring on your first finance lead, let's get on top of your numbers in 2024... *** We’re now taking our next batch of startup and scaleup clients in 2024. To join our next cohort waitlist, check us out here: https://lnkd.in/gm_K3gNj To join our 'yet to be named but totally awesome' newsletter, click here: https://lnkd.in/gSaemZct #planetstartup #cfo #startup #tech #finance

🧐 What does your startup need from their finance function? As a successful startup founder that's made it past $1M in annual revenue, you've proven to yourself that you know your way around your product, marketing, sales, and even interviewing candidates for the right role. But what about your startup's finances? As your startup continues to grow, managing its financial aspects and steering the company's growth can become a challenge. Eventually you’ll want to hire a finance expert with specific startup and scale-up expertise. Here is what you'll likely need from your finance team and the roles we recommend you hire: 📈 Early Growth Startup ($1M+): Bookkeeping & Accounting Handling financial management tasks can be overwhelming. At this stage you need bookkeeping and accounting support. Tasks such as banking, managing invoices (receivables and payables), payroll, and taxes need to be handled. This will keep your financial records accurate and allow you to focus on growth. 📊 Emerging Startup ($1M - $3M+): Controller & Financial Reporting Once your startup is around $1M-3M in revenue, it's time to build out forecasts and establish KPIs to track. You likely have a board to report to. You’ll need support to maintain monthly financial reports, set up processes to ensure accurate metrics (such as burn, ARR, retention, runway) and a financial model to help you make informed decisions. This will usually be through a financial controller with fractional CFO oversight. 🚀 Established Startup ($3.5M+): Financial Leadership Financial leadership to guide you in the right direction is key at all stages of your startup. As your startup continues to grow, having this support and guidance becomes even more critical. A financial leader such as a Fractional CFO will support you with managing your cash flow, help you plan your finances including your budgeting and forecasting , and ensure that you follow the strategic plan laid out with your board of directors. They will also support and advise you on your strategic growth initiatives, and raising your next round of financing. If you have any questions, DM me. I'm always up for a chat. #StartupFinances #Finances #Growth #FractionalLeadership #Startups

𝗪𝗵𝘆 𝗦𝘁𝗮𝗿𝘁𝘂𝗽𝘀 𝗖𝗵𝗼𝗼𝘀𝗲 𝗩𝗶𝗿𝘁𝘂𝗮𝗹 𝗖𝗙𝗢 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗶𝗻 𝗡𝗲𝘄 𝗬𝗼𝗿𝗸 New York is one of the most competitive business environments in the world, and startups here need to be agile and financially sound to survive and grow. That’s why many are turning to Virtual CFO (Chief Financial Officer) services. Here’s why: 𝗖𝗼𝘀𝘁-𝗘𝗳𝗳𝗲𝗰𝘁𝗶𝘃𝗲: Hiring a full-time CFO can be expensive for early-stage startups. Virtual CFO services offer top-tier financial expertise at a fraction of the cost. 𝗙𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆: Startups have evolving needs. Virtual CFOs provide scalable services, adapting to your business growth and changes without the long-term commitment of full-time staff. 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀: A virtual CFO offers more than just bookkeeping. They deliver high-level financial strategy, helping startups manage cash flow, optimize fundraising efforts, and make data-driven decisions to fuel growth. 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗖𝗼𝗿𝗲 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀: By outsourcing financial management to experts, founders can focus on what they do best—innovating and scaling their startups. 𝗔𝗰𝗰𝗲𝘀𝘀 𝘁𝗼 𝗘𝘅𝗽𝗲𝗿𝘁𝘀: Virtual CFOs bring specialized knowledge in areas like taxation, compliance, and financial planning, offering guidance on local regulations and the unique challenges of doing business in New York. For startups looking to compete and thrive in this fast-paced market, Virtual CFO services are the smart choice to drive financial success without the overhead. #Startups #VirtualCFO #FinancialServices #NewYorkBusiness #BusinessGrowth #StartupSuccess #NYCStartups #FractionalCFO #Entrepreneurship

Is it the end of traditional #CA roles? I came across this product when a friend (Vladyslav) commented on their founders’ post. The product has been featured #1 on Product Hunt! 🚀 It’s basically an automation tool that operates as a company’s virtual CFO. It’s called Fuelfinance. While the pricing looks high on first glance ($1200 per month), I feel it will end up saving 75-80% costs for medium sized companies in India! 🇮🇳 Finance teams are usually 5-7 members, and this tool can reduce it to one person. I think something like this will be created in India, and monetisation won’t just be subscription revenue. I think an embedded fintech play will make more sense, where this technology provider also builds underwriting muscle and helps financial institutions enable debt for these companies. Cashflow based lending. And eventually, the same company could become a financial institution in its own right. A future where as soon as a bill is created on a pre-rated customer, the company gets a prompt then and there with a best-quote for discounting that particular invoice. Massive opportunity. And a massive problem solver for SMEs in India. Indian corporates are anyway debt starved. RBI says we have a Rs. 1 lakh crore credit gap. This might just do the trick? Nonetheless, a scary future for CAs in business finance, FP&A roles. If you are not upskilling yourself, wake up. Such tools are coming to dominate. Better leverage them before it’s too late. P.S: Would love to brainstorm, if anyone is building something similar for Indian audience. Especially for SMEs. #startups #fintech #consulting #ai