ScaleUp Financial Solutions

🪄 Does your consumer startup speak AI? 🪄 I recently shared my thoughts on AI impacts to funding for consumer-focused businesses. Now let's talk about the exciting side of what AI can mean for consumer startups. While AI-led companies are generating a lot of interest from VCs, the applications of AI and how startups are smartly integrating AI software into their business model is gaining steam. 🔖 This recent article by Aileen Lee from Cowboy Ventures really highlights the areas that we also encourage our clients to focus on, namely: * How does the product leveraging AI drive unique customer benefits? * Great storytelling is still a big part of early customer acquisition and VC attention. See Rachel Williams' recent post about our role as storytellers for our clients. * It is way too easy to blow up your capital structure by overspending to build your own AI. Capital efficiency should not be traded off for AI hype that won't translate into revenue. Are you testing the AI waters or going all in? 🌊 #fractionalCFO #consumerAI #AIVentureCapital #AIcompanies #AIstartups

🔔 Fresh off the Pitchbook press - Q2 2024 Venture Capital Activity 🔔 TL;DR is that we are still in a sluggish VC environment, with limited deal activity, constraints on fundraising and limited exits. 📉 US VC fundraising is down from previous peaks and VC deal activity for 2024 is projected to be at its lowest volume since 2017. Additionally, only 14 companies went public in Q2, limiting exits that would free up additional liquidity for reinvestment. While Q2 VC deal value jumped up from previous quarters due to a number of outsized deals, 2024 is projected to be one of the lowest years for VC-backed exits in the past decade. Have we reached the bottom? There are varying perspectives on how to measure the bottom, but with the increase in down or flat rounds, we don't foresee a return to the 2021 spending spree any time soon. 💸 Curious about what this means for your business? Our fractional CFOs can evaluate your capital advisory needs to chart the best course of action. #FractionalCFO #venturefundraising #venturecapital #2025planning #financialmanagement Check out the full report here:

In today’s team meeting, we are talking about how our clients are approaching the rest of 2024. Who’s ready to go first? 🍹Look, I know it's summer. I know you're thinking about beaches, barbecues, and maybe even slowing down. Your employees are on vacation, you're starting to think about 2025 budgets, and the political landscape is giving us all whiplash. But guess what? It is precisely during these times that you should redouble your efforts and capitalize on potential market advantages. As a fractional CFO, I’m advising my clients that this is not the time to slow down. As one of the regular summer concert artists Dave Matthews eloquently stated: “Where are you going?” 🧭 📉 If you're below target: For businesses operating below your annual target, focus is critical.When's your next big chance to land new business or keep your high-value customers? Find it and stay focused on winning that customer. Now is also the time to conduct a thorough analysis of immediate and long-term budget implications. Be on top of recurring expenses and where unnecessary spends can be pushed out or reduced. Reassess resource allocation to send your money to the right place that will make an impact now. 🎯 If you're on target: Don't get comfortable - the economy's still a bit shaky, it's an election year, and money's tight. Manage your cash prudently and stay laser-focused on sales and retention. Remember, good is the enemy of great. 📈 If you're above target: Explore smart investments that will enhance your position in 2025. Can you grow your team earlier than planned? Is there equipment you can buy now to build anticipated capacity for later? What about partnerships or acquisitions? Build that moat around your business to continue to strengthen your market position. I encourage each of you to approach the remainder of 2024 with renewed determination and strategic focus. Leverage your strengths, address your challenges head-on, and work cohesively towards exceeding your annual objectives. #FractionalCFO #FinancialPlanning #Budgeting #2024Goals