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

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cjgustafson.substack.com

Sheila Liming

The AI-powered Podcast Player