Helping a startup go from low financial clarity to closing an oversubscribed $40M Series A

The situation

A seed-stage startup came to Ibex because the executive team wanted "better insight into their financials" and was looking to prepare for a fundraise in the next 6 months. Their current outsourced CFO delivered statements in Excel each month without a discussion of trends or any detail into expense variance and the executive team had serious questions around what their current runway was, how much they should raise, and their targeted use of funds.

What we did

Ibex started with accounting first, converting the company to QBO and revising the chart of accounts to split between COGS, R&D, S&M, and G&A parent headers. Ibex also added customer and class tracking to run profitability analysis by customer and product line. From there, the team:

• Created budgets for larger projects and ran BvA reports each month to help the management team determine which projects were under/over budget and which product lines were most profitable.
• Using a few months of insights, set up a Fathom HQ instance and held bi-weekly forecasting meetings for ~6 weeks plotting out different scenarios with the executive team for headcount ramp, debt financing for CapEx, anticipated sales funnel, and fundraising.
• Based on three potential scenarios, the management team and Ibex decided on both the "baseline requirement" and "optimal" fundraising amounts.
• Created a three year, three statement pro forma for the "optimal" scenario and helped assemble a data room for a Series A.
• Led financial due diligence meetings with key VC associates responsible for due diligence on the round, walking through assumptions on the model and answering questions about scale-up.

The result

The targeted $20M round was significantly oversubscribed and the client settled on raising $40M across five firms to accelerate growth.