The CFO who builds the machine vs the CFO who prices it
The CFO who gets you to Series C is rarely the CFO who takes you to IPO. Yet most boards still hire “a CFO” as if the role is static.
Between Series B and IPO, the role quietly splits into two distinct value-creation levers: the operator and the capital markets strategist. Confusing the two is one of the most expensive hiring mistakes that growth companies make.
If the immediate priority is scaling the business, you need someone who can build the engine. If the priority is raising capital and positioning for liquidity, you need someone who can price and present it. Hiring the wrong profile too early creates drag, and waiting too long creates pressure.
In a market where capital is more selective than it was in 2021, getting this timing right matters more than ever.
The operator CFO: builds the machine
The operator CFO creates value internally. Their work is rarely visible outside the business, but it is foundational to sustainable growth.
They build forecasting discipline and board trust. They implement ERP systems and financial infrastructure that bring clarity to performance. They improve gross margin and burn efficiency. They introduce cross-functional accountability and professionalise the finance function. And crucially, they translate product economics into decision-making across the organisation.
Their focus is control, predictability, and operational rigour. They thrive in ambiguity, scaling complexity, international expansion, and rapid hiring environments. And they’re comfortable operating without perfect information and building systems while the business is still moving.
Without this capability, companies often miss forecasts, lack real-time visibility, struggle with capital efficiency, and build valuation narratives based on fragile foundations.
The capital markets CFO: prices the machine
Where the operator CFO builds value internally, the capital markets CFO creates value externally.
They structure equity and debt strategically. They shape the investor narrative and positioning. They understand valuation mechanics, market comparables, and multiples. And they navigate IPO readiness, governance and public scrutiny.
Their focus is cost of capital, perception, and market confidence. They are comfortable running a process, managing bankers, negotiating terms, and communicating under pressure. They understand how markets interpret signals and how investor expectations evolve through different phases of growth.
Without this expertise, companies can raise inefficiently, accept unfavourable terms, mismanage expectations, or struggle during the transition to public markets.
Why the distinction matters more today
In 2021, growth-at-all-costs masked capability gaps. Capital was abundant, valuations expanded rapidly, and storytelling often compensated for operational immaturity. But today’s environment is different.
Capital is more selective, structured rounds are more common, debt is a larger part of the financing mix, and investors demand forecast credibility and operational discipline. Now, the public markets reward consistency over narrative. And as a result, the margin for CFO misalignment has narrowed.
In tighter markets, fundamentals matter. But capital strategy still determines outcomes. Few executives truly excel at both.
Hiring a capital markets CFO too early can create a mismatch between optics and operational reality. They may be strong storytellers but struggle to build infrastructure in chaotic environments. The result can be a valuation that runs ahead of the fundamentals.
Keeping an operator CFO too long can create a different problem. The business may be run exceptionally well internally, but the company under-leverages capital markets, misses valuation optimisation opportunities, and fails to position itself effectively with investors.
A simple stage lens
The highest-performing growth CFOs increasingly combine both skillsets. They can build the engine and then explain it to the market. A practical way to think about the transition is:
Series B → bias toward operator strength
Series C–D → blend required
Pre-IPO → capital markets expertise becomes critical
The rise of the hybrid CFO
The most valuable CFOs today are hybrids. They have built systems themselves, raised multiple rounds, navigated at least one market correction cycle, and they understand product and unit economics deeply. They can also sit comfortably with both engineers and with bankers. These profiles remain rare, but boards are beginning to recognise their value.
Between Series B and IPO, the CFO role is less about finance and more about value architecture. Boards don’t just need a safe pair of hands… They need clarity on what type of value they are trying to create.
If you need help placing the right level CFO for your company, get in touch with Dan Walker ([email protected]) at Harmonic today to find out more.
