Key insights

• ⚙️ Sarah joined Square when it was 3 years old and had 200 employees, initially focusing on strategic partnership with the CEO. She later expanded her role to managing operations and product innovation, leading a team of 500-600 employees.
• 📈 Jason joined Groupon during rapid growth and IPO preparation, faced challenges such as selecting bankers, hiring a finance team, and getting the S-1 filed within a tight timeframe.
• 🔍 Hiring ahead of the actual need and focusing on future leadership needs, building a strong partnership with the CFO, establishing trust, and open communication are crucial for a successful CFO partnership.
• 💼 The importance of having a CFO for long-term business success, instilling financial discipline through relevant metrics and accountability, and Jeff Bezos' approach to financial discipline at Amazon.
• 📊 Considerations for fundraising and cash reserves, impact of market conditions on fundraising decisions, and the significance of being proactive and deliberate in financial strategies.
• 📈 Going public is environmentally driven and offers easier access to markets. Companies should consider forecasting ability, brand impact, and readiness for public market dynamics. They should prepare for volatility, public scrutiny, and short-selling activity as a public company.
• 📈 The key to accurate forecasting involves understanding business drivers, breaking down forecasting into algebraic equations, and hiring a team with open-ended thinking for accurate predictions.

Q&A

• How can accurate forecasting be achieved in business?

  Accurate forecasting involves understanding business drivers, breaking down forecasting into algebraic equations, and hiring a team with open-ended thinking, particularly those with an engineering or investment background.

• What are the key points to consider when a company is contemplating going public?

  The decision to go public should be environmentally driven, considering forecasting ability, brand impact, and readiness for public market dynamics. Additionally, companies should be prepared for volatility, public scrutiny, and short-selling activity as a public company.

• What are the considerations for fundraising and financial strategies in relation to market conditions?

  Considerations for fundraising, the impact of market conditions on fundraising decisions, and being proactive and deliberate in financial strategies are important factors to consider, especially regarding cash reserves and market dynamics.

• What is the significance of having a CFO for long-term business success?

  Having a CFO is crucial for instilling financial discipline, using relevant metrics for business growth, and following Jeff Bezos' approach to financial discipline and analytic validation at Amazon.

• What are the important factors to consider when hiring a CFO?

  Hiring a CFO ahead of actual need, focusing on future leadership needs, building a strong partnership, seeking complementing skill sets, establishing trust, and maintaining open communication are crucial factors to consider when hiring a CFO.

• What were the key responsibilities and challenges faced by Sarah and Jason in their CFO roles at Square and Groupon?

  Sarah initially focused on strategic partnerships at Square, later expanding to managing operations and product innovation. Jason, at Groupon, handled challenges during rapid growth and IPO preparation, such as selecting bankers, building a finance team, and meeting tight deadlines.

• 00:15 Two experienced CFOs share insights on their roles and how they evolved at Square and Groupon. Sarah joined Square when it was 3 years old with 200 people, initially focusing on strategic partnership and later expanding to managing operations and product innovation. Jason joined Groupon during rapid growth and the IPO preparation phase, handling significant challenges within a short time frame.
• 05:48 Hiring a CFO should be done ahead of the actual need, maintaining a focus on future leadership needs, building a strong partnership, and seeking complementing skill sets. It's crucial to establish trust and have open communication with the CFO for the partnership to be successful.
• 10:54 The importance of having a CFO, instilling financial discipline, and using relevant metrics for business growth. Jeff Bezos' approach to financial discipline at Amazon.
• 15:57 The importance of metrics and finance discipline at Amazon, considerations for fundraising, the impact of market conditions on fundraising decisions, and the significance of being proactive and deliberate in financial strategies.
• 20:44 The decision to go public is environmentally driven. Companies should consider their forecasts ability, brand impact, and readiness to deal with public market dynamics. Public companies need to be prepared for volatility, public scrutiny, and short-selling activity.
• 25:30 The key to accurate forecasting is understanding business drivers, breaking down forecasting into algebraic equations, and hiring a team with open-ended thinking for accurate predictions.