Why Your Startup Might Not Need a CFO
By Mart Laul
Apr 15, 2025
When early-stage founders think about getting serious with their finances, the default thought is often: “We need a CFO.”
But here’s the truth – in the early days, most startups don’t actually need a full-time Chief Financial Officer.
What you really need is financial clarity – not a $150k/year hire.
🚫 What a CFO Does (That You Might Not Need Yet)
A full-time CFO typically handles:
Strategic financial planning
Investor relations & dataroom prep
Budgeting and forecasting
Hiring analysis and financial modeling
Managing finance teams and external vendors
Monthly reporting and board prep
They’re essential — but usually overkill for a 5–10 person team still figuring out product-market fit or raising pre-seed.
✅ What You Do Need
In the early stage, most founders need:
A clear 12–18 month financial model
Understanding of burn, runway and hiring tradeoffs
Visibility into cashflow
Systems to track revenue, expenses and metrics
A way to answer investor questions with confidence
Simple, clean reporting – not corporate dashboards
This doesn’t require a CFO. It requires structure and support. That’s it.
🤯 The Hidden Cost of Hiring a CFO Too Early
Hiring a CFO too early can actually slow you down:
They may overcomplicate things (you don’t need a 100-tab Excel model)
They can become a bottleneck (finance decisions run through one person)
They cost €100k–€150k+ per year – money better used for growth
And often, they don’t know your business as well as you do.
🧠 The Better Alternative
If you’re pre-seed to Series A, consider:
Getting a financial model built for your business
Setting up clean, easy-to-use reporting
Having access to a part-time strategic finance partner
Getting investor-ready – without the headcount
This gives you 80% of the benefits of a CFO, without the cost or complexity.
🎯 TL;DR
You don’t need a CFO.
You need financial clarity, structure and a model you understand.
Start with that. The full-time CFO can come later – when you actually need one.
Need help setting up your financials without the CFO price tag?
We help founders do just that.
