The Client
This early-stage pre-revenue client has worked intensively alongside clinicians, engineers and scientists over the last 10 years to deliver high-performance, cost-effective medical device technology that meets the increasing demands of modern healthcare teams. They are supported by the European Regional Development Fund and the South West Digital Accelerator Programme.
The Requirement
Firstly, having successfully brought their product to market, this client required access to an experienced Fractional CFO to support them in developing and implementing an effective financial strategy, introducing financial controls, and preparing for investment in the future. In particular, they needed help to understand their cash position, get a more accurate view of the company’s current performance and build a financial strategy to support the full commercialisation of their product.
The Solution
Isosceles provided a Fractional CFO with an investment background and experience working with biotech companies. They blended this with some Financial Controller time to strengthen the finance team and manage the core finance work.
Their first task was to conduct a thorough analysis with the Board of the current finance deliverables. Also, they considered the existing financial policies, obtained a comprehensive understanding of the business’s outlook, built their action plan, and prepared for investment.
- Established financial discipline by introducing best-practice financial processes, policies and management.
- Created a monthly reporting pack so the Board can accurately view how the company is performing.
- The CFO attended all Board meetings and led financial discussions and decision-making.
- Built a cash flow forecasting model and generated profit and loss statements to monitor the company’s cash runway and performance and identify emerging fundraising requirements.
- With the senior leadership team, they developed a financial strategy, assessing the current financial restrictions and identifying what finance will need to do to deliver the growth goals for the business. A financial model was run quarterly to strictly monitor the sales processes.
- Created a ‘What if’ scenario model to explore the cash impact of different growth scenarios and pricing strategies.
- Prepared investment documentation, set up a Data Room, and initiated discussions with potential investors.
Why Isosceles?
This client chose Isosceles because the proposed CFO had a corporate finance background. Additionally, he had experience within the biotech sector and had previously helped similar companies with the same challenges while preparing for investment. They were able to offer them a choice of CFOs; they were impressed by our flexibility and ability to introduce other finance professionals to work with the CFO on tasks that didn’t need their level of expertise or cost.
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The Results of Investment Preparation
Isosceles helped the company:
- Professionalised the finance function.
- Then, gave the board confidence in the numbers and the growth strategy.
- Introduced a more robust financial model, clarifying where the senior leadership team spent the money.
- Before onboarding a fractional CFO, the finance role was handled by different people across the company. The team could now focus on their core roles and spend more time on business operations and strategy.
- Lastly, received an additional cash injection from existing investors.
Author’s Biography
Dominika Majcher is a Digital Marketing Graduate at the start of her marketing journey with Isosceles.
Connect with Dominika on LinkedIn
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