2024-03-05 16:06 For CFOs

What do Investors care about?

What Do Investors Care About with Their Portfolio Companies?

The short answer is a CFO!
A CFO is like a dentist: not having one can cost you time and money, and the right one makes everything easier. But hiring or even outsourcing CFO functions is expensive and challenging.

So what’s a startup to do before they have a CFO, but once they need to be reporting quarterly to their investors?

Today’s AI can help startups maximize returns and cashflow while minimizing expenses.

It can enable startup founders who aren’t CFOs to answer questions VCs (Venture Capitals) regularly need answers to, on topics such as:

Margins: P&L, net profit, expenses, and income MoM (month over month)
Cash flow: burn rate and anticipated runway
Burn management: What are the company’s top expenses, and how can they be broken down? What is the tax impact of Section 174?

Too often, VCs need financial information that founders struggle to find value in—financial reports delivered on a quarterly basis are difficult to produce, and obsolete the moment they are submitted. For startups pressed for time and resources, reporting that feels burdensome is a source of stress and can strain valuable relationships with their funders.

With specialized AI tools, friction between investors and portfolio companies is reduced. Information is available on an ongoing basis. That provides insights in real-time to investors and provides value to founders who gain access to information instantly and can respond as needed.

Instead of a quarterly reporting requirement, VCs and their portfolio companies can move towards a shared set of goals more easily, anticipating and responding to problems as they arise, and able to proactively engage with one another like never before.

Octopus AI can provide answers to financial questions questions within seconds, even before a startup has a CFO in place. With Octopus AI, you can ask any financial question about your company's finances, receive instant answers, and take immediate action, instead of waiting hours, days, or even weeks for a response.

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