Leon Khoshnevis and Gabriel Hebbelinck of SBVenture sat down with Laurent Saurel, an experienced CFO and fractional finance executive, to discuss the inner workings of early startups.

Laurent is a fractional CFO specializing in guiding early-stage startups through their financial journeys. With a rich background in finance from roles in large international corporations like Ubisoft, Laurent transitioned to working with startups in the Bay Area. His experience spans SaaS, consumer products, gaming, and user-generated content. Having ascended to the CFO role in various startups, Laurent now focuses on helping founders achieve financial maturity early on, particularly when budgets are tight. He is passionate about supporting founders and exploring ways to connect them with potential co-founders to enhance their chances of success.

Getting Started

One of the key pieces of advice Laurent shared was the importance of taking the first step rather than getting bogged down in overthinking the process. "The biggest struggle is how to get started," he said. "Just get started. Take action, and if it doesn't work, try something else or do it differently. Action trumps procrastination."

Laurent emphasized that this proactive mentality is crucial, especially for first-time founders. "You can read about entrepreneurship online as much as you want, but you just have to do it," he said. "If it doesn't work, try something else or do it differently. Accelerate the questions you need to ask yourself and the answers you'll get. Otherwise, you'll never get started. You might start spending money on something that's not marketable."

Fundraising: Networking and Bootstrapping

When it comes to fundraising, Laurent highlighted the challenges first-time founders face and provided strategies for navigating the process. "For first-time founders, it's going to be a lot of 'manufactured luck,'" he said. "You need to network and connect with people who can write checks, like angel investors and family offices. Bootstrap as much as possible before seeking VC funding, which can bring more complexity."

Laurent emphasized that, unlike repeat founders who may have existing connections and resources, first-timers have to be more proactive in building relationships. "You don't know anybody. You need to know people who can write checks. You have to put yourself out there and connect with people."

He suggested leveraging platforms like LinkedIn and Twitter to build those connections and get your name and story out there. "When you're very early on, it's rare to get a VC to give you money unless you're an exceptional case, like developing a new OpenAI. Otherwise, you'll need to hustle a bit."

For founders who don’t necessarily need VC funding, Laurent recommended a bootstrapping approach. "If you don’t need VC funding, you don’t need to network aggressively. The VC will see you if you need their money. You don’t want to look desperate; instead, have something to show so people come to you."

Balancing Marketing and Product

A key challenge early-stage startups often face is balancing marketing and product development. Laurent shared his insights on how finance can bridge this gap.

"The problem is, many decisions are based on clear, strategic goals," he said. "It doesn’t mean being extremely procedural or taking weeks to figure things out, but you should spend time thinking about it and put it into simple numbers."

He explained that while the marketing team might focus on user acquisition, the product and engineering team might prioritize improving reliability and adding features. "The product and engineering team might focus on making the app more reliable and adding features, while the marketing team focuses on user acquisition. Finance can step in to analyze where spending makes the most sense and offer an objective view."

By taking a data-driven approach and analyzing potential returns on investment, the finance leader can help founders make informed decisions about resource allocation. "This type of analytical perspective is invaluable, especially when every dollar counts. For example, if you acquire users at the same rate you lose them, you’re wasting money. Improving retention first can make user acquisition more effective."

Accounting and Cost-Benefit Analysis

In addition to balancing marketing and product priorities, Laurent emphasized the importance of having a finance person, even part-time, to help with decision-making and maintain financial discipline. "Bringing in a finance person, even part-time, can be hugely beneficial for early-stage startups to help with decision-making and maintain financial discipline. Founders should regularly analyze the costs and benefits of their initiatives."

He explained that this independent financial perspective can remove emotion from the decision-making process. "It provides a third-party view that can clarify decisions. Keeping a record of decisions and their rationale helps ensure accountability and efficient spending."

This level of financial rigor is particularly valuable for student-led startups, where founders may not have extensive experience in accounting and cost-benefit analysis. "Founders should regularly analyze the costs and benefits of their initiatives," Laurent said. "Regular reflection on what you’re doing and why helps maintain focus and direction."

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