6 actions to help CFOs drive and achieve fundraising goals

Here are six prescriptive actions that can help financial leaders drive and achieve their fundraising goals in this uncertain time.

1. Single version of truth. For your finance team, consistency is key. Every member needs to be on the same page regarding the numbers — ambiguities or conflicting narratives simply won’t cut it. Good leadership teams ensure everyone, from the CFO to the chief revenue officer to the controller, understands the right metrics and is sharing a consistent story. Having a single version of the truth is crucial for both internal alignment and external communications, especially when seeking funding.

2. The importance of an integrated system. Top-tier organizations operate with a single source of truth. An integrated system where the Chief Revenue Officer (CRO) and the CFO align on numbers is essential. This alignment not only simplifies reporting but strengthens the strategic narrative you present to potential investors and internal leadership. It’s essential to have a consistent and accurate set of numbers that everyone has visibility, thereby removing siloed departments and facilitating better decision-making and strategic planning.

3. Articulating financial strategy. There’s an abundance of capital available. However, the challenge lies in how financial leaders communicate their stories. While in the last couple of years, we’ve seen tech CFOs be diligent in conserving resources, perpetual austerity isn’t sustainable. It’s time to prioritize growth, but not at all costs. Proven sustainable growth and financial health are setting companies apart in the eyes of investors. It’s essential to prove past successes and outline clear strategies for capital deployment.

4. Preparing for M&A activity. CFOs need to be proactive, ensuring their companies are ready to take advantage of opportunities when they arise. Proper due diligence is essential but can derail deals for those not prepared with what may be found. Whether your company is looking to acquire or sell, CFOs on both sides of the table need to be prepared with documentation, reports and regulatory considerations.

5. From scorekeepers to game changers. Gone are the days when CFOs could merely observe from the sidelines. In 2024, CFOs must actively engage in the game, collaborating closely with other business leaders to inform and analyze financial data. Your role is no longer about just reporting the score but has evolved to drive the strategy that leads to victory. CFOs must transition from being passive scorekeepers to active participants in strategic decision-making, leveraging data insights to drive the business forward.

6. Engaging the board. Boards today demand more than just information — they seek active engagement. As a CFO, your goal cannot be to simply measure ROI or provide a detailed report to the Board. They’re looking for you to transform data into actionable intelligence that propels the company forward. Boards are increasingly looking for engaged, data-driven discussions, so CFOs need to be prepared to present data compellingly and engagingly.

The path forward

While capital is available to access, the challenge for many companies right now is survival amid higher expectations or barriers to receiving funding and a slowdown in IPOs and dealmaking. However, those who navigate this period successfully can look forward to future growth. There are two types of CFOs: the strategic CFO and the operational CFO. Many CFOs may believe they’re both, but that isn’t always the case. In the current environment, the best CFOs can recognize who and what their companies need them to be — often finding a happy medium to focus on unit economics and making informed decisions while keeping a strategic eye on the future to drive value and growth.

Adapted from: “6 actions to help CFOs drive and achieve fundraising goals”, by Dean Quiambao, partner and Northern California market leader at accounting and consulting firm Armanino, published on CFO News on 15 August 2024.