Is it time for a CFO?

Written By JJ Kenerleber

Why Most Startups Don’t Actually Need a CFO (Yet)

Hiring a CFO feels like a milestone. It signals maturity, investor readiness, and financial rigor. But for most post-Seed and Series A startups, it’s also a mistake.

Here’s why and what to do instead:

The Cost of the Wrong Hire

A great CFO can cost $250K+ in salary alone—before bonuses, equity, and benefits. But even more damaging is the opportunity cost of hiring someone too senior, too soon:

  • They’re often overkill for your stage.

  • They focus on control, not growth.

  • They may lack hands-on, build-from-scratch skills.

And most importantly: they won’t solve your biggest financial pain point—clarity.

What You Actually Need

At this stage, your finance needs are straightforward but critical:

  • Cash flow forecasting

  • Unit economics

  • Board-ready reporting

  • Scenario modeling

  • Capital planning

Most of this can be done by a sharp controller, FP&A lead, or fractional finance leader.

What matters is not the title—but the function.

When It’s Time for a CFO

There is a right time to hire a CFO. Look for these triggers:

  • You’re planning a Series B and need investor-grade financial strategy.

  • You’re launching financial products or embedded credit.

  • You’re expanding internationally or adding multi-entity complexity.

  • You need deep capital market experience (VC + credit).

At that point, a CFO is fuel—not overhead.

Takeaway:

Hiring a CFO too early can slow you down. Get the right financial foundation in place first—then scale the team when the time is right.

JJ Kenerleber
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