Navigating IPO Challenges: The CFO's Evolving Role in AI's Influence

In this episode, Alex Immerman, partner at Andreessen Horowitz, joins CJ to discuss the CFO role and how it's changing in the era of AI. He explains what the components of a company’s AI agenda the CFO should own, how and where it should be leveraged in an organization, and why, if you’re preparing to go public, AI needs to be mentioned in your S-1. He breaks down how the financial landscape differs greatly between AI-native SaaS companies and traditional B2B SaaS companies in terms of retention curves and gross margins, and how this relates to the ever-important LTV to CAC metric. As someone who has worked with prominent CFOs and interviewed many for a16z’s portfolio companies, Alex also describes the qualities of a great CFO, and shares his favorite interview question, before discussing CFOs, CEO, and board dynamics.

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LINKS:

Alex Immerman on X (@aleximm): https://x.com/aleximm

Alex Immerman on a16z: https://a16z.com/author/alex-immerman

Alex Immerman on LinkedIn: https://www.linkedin.com/in/immerman

Andreessen Horowitz:

https://a16z.com

CJ on X (@cjgustafson222): https://x.com/cjgustafson222

Mostly metrics:

http://mostlymetrics.com

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So You’re Looking for a “Strategic” CFO? Bloomerang’s Steve Isom on What That Really Means:

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TIMESTAMPS:

(00:00) Preview and Intro

(02:19) Sponsor – Navan | NetSuite | Planful

(05:52) What Separates Good CFOs From Great Ones

(11:56) Questions Alex Asks When Interviewing CFOs for Portfolio Companies

(15:17) How CFOs Should Engage With Investors During the Hiring Process

(17:22) Sponsor – Tabs | Rippling Spend | Pulley

(22:22) What a Great CFO-Investor Relationship Looks Like

(24:46) The CFO-CEO-Board Dynamic

(28:27) How the Role of a CFO Is Changing in the Era of AI

(31:41) AI-Native Company Versus Incumbent for Finance Category Leader

(33:49) Components of a Company’s AI Agenda That the CFO Should Own

(38:39) Why the LTV to CAC Metric Is So Important to Investors

(41:13) LTV to CAC by Sector

(42:41) The Importance of Gross Margin Adjusting Your CAC Payback

(43:21 Retention and Churn Patterns in AI-Native Companies

(45:23) Gross Margin in AI-Native Companies Versus Traditional B2B SaaS

(50:11) What It Takes To Be a Public Company-Ready CFO Today

(53:58) How IPO Expectations for the CFO Have Shifted in the Past Few Years

(55:05) Wrap

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#AINativeSaaS #a16z #CFO #LTVtoCAC #AIinSaaS