From Seed to Series A: When (and How)
to Hire Your First Finance Executive

Customer-focused finance team, including fractional CFOs, providing tailored support for business growth.
From Seed to Series A: When (and How) to Hire Your First Finance Executive | Valuefinex

1. Why This Hire Matters More Than You Think

You just closed a funding round. Congrats. But over the next 12 months, your startup will burn through that cash faster than expected—and your ability to manage capital wisely begins with your first finance executive hire.

This hire significantly impacts your startup’s:

  • Burn rate management: Essential for extending runway and ensuring sustainable growth.
  • Investor reporting: Critical for maintaining trust and confidence with your investors.
  • Strategic visibility: The accuracy and clarity of your financial forecasts and KPIs depend directly on this role.

Many founders delay this hire or hire too junior, resulting in financial mismanagement or inadequate strategic financial planning—often costing far more than the initial salary investment.

2. VP Finance vs. CFO vs. Head of Finance: What's the Difference?

Choosing the right finance executive title can be confusing. Here's what you need to know:

  • VP Finance: Typically operationally focused, handles forecasting, controls, and reporting. Salary range usually between £90,000 - £120,000 annually.
  • CFO (Chief Financial Officer): Strategic leader handling high-level fundraising, investor relations, strategic planning, and company-wide financial decisions. Salary typically £140,000 - £162,000 annually.
  • Head of Finance: Similar to VP Finance, usually less senior and more transactional, ideal for overseeing day-to-day financial management and basic reporting. Salaries typically £70,000 - £90,000 annually.

At Seed to Series A stage, fractional CFO services often provide the perfect balance—strategic expertise at a fraction of the cost. Learn more in our dedicated guide: Fractional CFO vs Full-Time CFO.

3. What a First-Time Finance Exec Should Deliver (And What They Shouldn't)

Don't expect your finance executive to completely rewrite your business model—but do expect them to provide visibility into your numbers and streamline your financial processes.

Core deliverables include:

  • Cashflow Forecasting: Proactive management of cash inflows and outflows to avoid surprises.
  • Investor Reporting: Accurate, timely financial information to keep investors confident.
  • Burn Rate and Runway Planning: Critical for knowing how long your funding lasts and planning your next round.
  • Setting up Financial Controls: Establishing processes to manage and protect financial resources effectively.
  • Series B Readiness: Ensuring your finances are structured for future funding and scalable growth.

They typically won't single-handedly lead your fundraising, but they are essential for supporting investor interactions and providing credible, accurate data.

4. How to Set Them Up for Success (Onboarding Tips)

Your new finance executive's success hinges on a structured onboarding process:

  • Week 1 Essentials: Provide immediate access to financial data, key personnel, existing financial systems, and essential company information.
  • 30/60/90-Day Framework:
    • First 30 days: Assessment and alignment—review existing data, establish immediate cash flow visibility, meet key stakeholders.
    • 60 days: Implementation—begin financial control setups, improve reporting processes, integrate tools like ERP and dashboards.
    • 90 days: Strategic optimisation—fine-tune forecasting, establish ongoing investor reporting standards, and streamline financial systems.
  • Tools and Systems: Equip them with robust solutions such as Management Reporting Automation and Power BI for Finance.
  • Alignment with Leadership: Ensure regular meetings with the CEO and Product/Tech leads to maintain financial alignment with company strategy.

Bonus Tip: Consider pairing your new hire with a fractional CFO for strategic guidance as they ramp up—explore how we can help at Valuefinex Fractional CFO Services.

5. Red Flags and Common Mistakes

Avoid common pitfalls that could derail your startup’s finances:

  • Hiring Too Junior or Too “Corporate”: Ensure they have hands-on experience suited to the dynamic startup environment.
  • Expecting Miracles Without Systems: Set realistic expectations and ensure they have the right systems and processes from the outset.
  • No Strategic Seat: Excluding them from strategic discussions reduces effectiveness and hampers proactive financial planning.
  • No Clear Handover: If replacing founder-managed finance, ensure a clear and structured knowledge transfer.

6. What Investors Expect From Your Finance Leader

Your investors expect clear, timely insights into your startup’s financial health:

  • Monthly Board Packs: Concise, accurate financial reports demonstrating business performance.
  • Clear Visibility on KPIs: Transparency around burn rate, runway, customer acquisition costs, revenue growth, and other critical metrics.
  • Confidence in Budgets vs. Actuals: Accurate tracking of projections versus reality, instilling investor confidence in your financial management.
  • Building for Scale: Evidence that your financial structures, reporting, and controls are robust enough to handle future growth.

Make the Right Finance Executive Hire for Your Startup

Choosing your first finance executive sets the foundation for strategic financial management, efficient operations, and investor trust. At Valuefinex, our CFO services support startups from seed through Series A and beyond, providing experienced fractional CFO support tailored specifically to your growth stage.

Ready to find the right finance leadership for your startup?

👉 Book your free CFO consultation today or visit us at 33 Queen Street, London EC4R 1AP.