Key Takeaways
- • Bessemer Venture Partners advises that the first finance hire at early- to growth-stage SaaS companies is typically a head of finance or VP of finance at the Series A or B stage, with a CFO following later as scale requires.
- • Bessemer's CFO Community survey found 37% of respondents identified $10 million to $25 million in ARR as the sweet spot for bringing on a CFO, while Webflow's Ivan Makarov said the threshold often comes closer to $20 million ARR.
- • Experts recommend hiring an FP&A-oriented finance lead first, since accountants find strategic planning harder to learn than finance professionals find accounting, and the FP&A lead can then hire a controller.
- • The most important quality in a finance lead is the willingness to challenge founders, according to Webflow's Ivan Makarov, who said finance leaders "bring reality into the room."
- • CFOs typically demand more equity than a VP of finance, and founders may trial a candidate on a contract or fractional basis before a full-time offer.
Summary
Bessemer Venture Partners outlined best practices for hiring finance leaders at early- to growth-stage SaaS companies, drawing on interviews with four seasoned SaaS finance leaders, Operating Partner Jeff Epstein, and Miia Laukkarinen, Bessemer's VP of talent. The guidance frames finance leadership as critical to infrastructure, cash management, and navigating external shocks, citing the recent collapse of Silicon Valley Bank as an example of why experienced finance leaders matter.
The article distinguishes two sides of a finance function: controllership, which focuses on accurate historical books and financial statements and is typically staffed by CPAs with audit backgrounds, and financial planning and analysis (FP&A), which focuses on forward-looking modeling and projections and is often staffed by people from investment banking or business operations. Julian Lange, CFO at Upvest, noted that few people excel at both.
On timing, the article cites several signals: rising business complexity such as geographic expansion, new functions, additional products, and multiple corporate entities; growing spend; preparation for an audit or fundraise; and an inability to produce accurate cash flow projections. Complexity commonly emerges around the $5 million to $10 million ARR mark, according to Christopher Kitching, CFO at Databook, while Ivan Makarov of Webflow said it often arrives closer to $20 million. Bessemer's CFO Community survey identified $10 million to $25 million ARR as the sweet spot for a CFO hire.
On role selection, Miia Laukkarinen said companies typically hire a head of finance or VP of finance at the Series A or B stage, who is hands-on, co-leads fundraising with the CEO, and manages an accountant or one to two people. A CFO becomes necessary as ARR approaches the triple digits and the company needs a full team of accountants and FP&A experts. Betty Kayton, Fractional CFO at Bastille Networks, observed that CFOs sit in leadership meetings in a way VP-level finance leaders generally do not. The article also notes CFOs often demand more equity and may be engaged first on a contract basis, and that the rise of fractional CFOs reflects efforts to preserve operational efficiency.
Experts in Bessemer's portfolio generally advise that, if forced to choose, founders should hire an FP&A-oriented candidate first, since accountants often struggle with strategic planning while finance professionals can learn accounting. Ivan Makarov noted that VP-level finance leaders typically have a controller reporting to them, not the reverse. The article concludes that the most valuable trait is the willingness to challenge founders with fact-based perspective.
The article distinguishes two sides of a finance function: controllership, which focuses on accurate historical books and financial statements and is typically staffed by CPAs with audit backgrounds, and financial planning and analysis (FP&A), which focuses on forward-looking modeling and projections and is often staffed by people from investment banking or business operations. Julian Lange, CFO at Upvest, noted that few people excel at both.
On timing, the article cites several signals: rising business complexity such as geographic expansion, new functions, additional products, and multiple corporate entities; growing spend; preparation for an audit or fundraise; and an inability to produce accurate cash flow projections. Complexity commonly emerges around the $5 million to $10 million ARR mark, according to Christopher Kitching, CFO at Databook, while Ivan Makarov of Webflow said it often arrives closer to $20 million. Bessemer's CFO Community survey identified $10 million to $25 million ARR as the sweet spot for a CFO hire.
On role selection, Miia Laukkarinen said companies typically hire a head of finance or VP of finance at the Series A or B stage, who is hands-on, co-leads fundraising with the CEO, and manages an accountant or one to two people. A CFO becomes necessary as ARR approaches the triple digits and the company needs a full team of accountants and FP&A experts. Betty Kayton, Fractional CFO at Bastille Networks, observed that CFOs sit in leadership meetings in a way VP-level finance leaders generally do not. The article also notes CFOs often demand more equity and may be engaged first on a contract basis, and that the rise of fractional CFOs reflects efforts to preserve operational efficiency.
Experts in Bessemer's portfolio generally advise that, if forced to choose, founders should hire an FP&A-oriented candidate first, since accountants often struggle with strategic planning while finance professionals can learn accounting. Ivan Makarov noted that VP-level finance leaders typically have a controller reporting to them, not the reverse. The article concludes that the most valuable trait is the willingness to challenge founders with fact-based perspective.
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