Executive Summary
Fundraising has traditionally been seen as the job of the CEO, the person who is typically thought
of as the “face” of the company, whereas the COO is more internal facing and handles all internal
matters such as operations, accounting, HR, and IT to start. The issue with this work split is that
some CEOs, especially those coming from tech, science, or creative backgrounds do not have the
knowledge or know how on how to master fundraising as per the expectations of a venture capital
firm. VC firms are becoming increasingly hard to get in touch with and even if you do get in touch
with them, speaking their language and convincing them can be difficult. This is where a fractional
CFO can be a great asset to your team.
What is a Fractional CFO?
A Chief Financial Officer (CFO) holds the mega-responsibility of ensuring your startup is utilizing
the funds it receives well. As the startup world has evolved, a seasoned CFO also now has
experience in fundraising and helping create financial models and valuations which include critical
ratios on unit economics particular to your industry that VCs care about.
A fractional CFO is a part-time CFO who inserts themselves in your company and can help you
with your greatest need – if its fundraising, they will help you create these financial models and
also represent your company in investor meetings. If your needs are around funds management
post a fundraising round, a fractional CFO is the one who can help your company develop controls
within your system which ensure that every cent is accounted for and will be explainable to your
investors, who you want to keep happy.
What is a Fractional CFO’s input to a Fundraising Round?
A fractional CFO can help prepare key financial documents and ensure a sound data room. They
can also help answer critical unit economics related question during pitches to valuable investors
and provide investors
Here are some of the key financial documents, which any startup should have in their data room
should have in place ahead of a pre-seed round: Incorporation certificate, capitalization table,
product demo, market research, supplier/end user testimonials, management and advisory board
profiles, business plan, financial model and valuation, and pitch deck. As you progress from one round to the next, the data room requirements tend to get increasingly arduous.
Where Can I Find a Fractional CFO who is Familiar with African Markets?
ProChange Africa is the among the leading companies providing fractional CFO services on the
continent. ProChange aims to democratize access to financial services, as such they are aiming to
provide entrepreneurs with as much value add as possible, while keeping prices low. As such,
ProChange saw a trend whereby entrepreneurs were paying extremely high retainer prices to
advisory firms to fundraise for them, while not getting the results they need.
To remedy this, ProChange is now offering a Package Deal for Entrepreneurs looking to go the
Venture Capital/Private Equity Route.
This package includes:
1) Financial Model
2) Business Valuation
3) Pitch Deck
4) Comprehensive Data Room Checklist for Financial and Legal Documents (specific to the stage
you are fundraising at)
5) Exclusive Contact List of Decision Makers at Top VC and PE Firms Focusing on Africa
All for one unbeatable non-retainer price.
If you are interested in this product, get in touch with ProChange today by emailing info@prochange.co or calling +254741133749.
