Wealth Management
THE IMPORTANCE OF THE CFO IN INVESTMENT AND RAISING CAPITAL
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he role of the CFO is comprehensive and complex, involving acute financial awareness combined with the flexibility to understand the contributions of each business department. However, where CFO’s are arguably the most valuable is in raising capital through investment. In any industry, the CFO will need to have the skills and creativity to translate data and metrics into an attractive business model that will attract investors in multiple stages of business development. What is the role of the CFO in preparing for fundraising? The CFO is the driving force behind fundraising efforts, providing the information and strategy necessary for raising capital. They must meticulously study the financial reports of the company they are representing, ensuring that they are choosing
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the best possible fundraising strategy and planning an ambitious yet achievable future. The CFO will have a significant impact on the success of both investment pitches and general networking carried out by the company, as their credibility and capabilities will be considered a reflection of the business itself. The better the CFO is at the practical management of business finances and the presentation of the business in pitches, the higher the chance of securing investment. How does a CFO raise investment? There are numerous methods that a CFO can use for raising investment. They are a financial leader who needs to be able to add value to the company it represents through not only effective financial management, but also by creating a clear vision for the company’s future. The CFO is also heavily involved in the process of
planning and delivering pitches to potential investors. As a result, they need to also have exceptional presentation and communication skills, alongside their ability to assess the potential development of businesses in the future. What are the differences between funding rounds in investment? There are five main funding rounds in investment – Pre-seed, Seed, Series A, Series B, and Series C. Sometimes there will also be Series D and E, that aim to accomplish similar goals to Series C. Pre-seed: Pre-seed funding is usually sourced from the personal resources of the business founder(s), such as personal savings, loans from family or friends, or crowdfunding campaigns. However, more local angel investors may also become involved
