Series B to G: The role of the finance team in scaling, with Charly Kevers (CFO @ Carta)
In this episode of "The Growth Minded CFO," hosts Alex and Lauren speak with Charly Kevers, the Chief Financial Officer of Carta.
Charly shares his extensive experience and perspective on the role of a CFO, drawing on his learnings from 7 years at Carta where he has seen the business go from Series B to G and reaching unicorn status.
The Modern CFO: Balancing Growth and Profitability
Charly's journey as a CFO at Carta encapsulates the modern-day complexities of a finance leader's role. Financial accuracy and compliance are no longer the only things CFOs think about. In fact, for Charly, today's best CFOs are really focused on driving growth while ensuring profitability.
As companies scale, managing the balance between expansion and financial stability becomes a sophisticated endeavor. Charlie emphasizes the importance of growing the business while keeping an eye on the path to profitability.
"The role of the CFO today is harder in that it's both managing how you grow as fast as you can, but now you really have to do it profitably."
Mastering Cross-Functional Collaboration
At Carta, the finance team extends beyond traditional boundaries, to include people from other disciplines who are there to serve the needs of the broader finance function.
Charly explains how he leads a diverse team, including engineers, to support other departments like sales and marketing at Carta. This integration allows finance to play a crucial role in customer experience and operational efficiency.
"I'm lucky to be part of an exec team that appreciates that you just put teams together in the best way to support the business and it doesn't have to be 'Charly - all you do is accounting and if FP&A'. I think there's more finance leaders can do to support their peers and that's how we continue to think about it."
Charly believes in the power of 'constraints to drive creativity' within teams, advocating for clear growth metrics and targeted objectives. By establishing financial and operational constraints, teams can innovate within established boundaries, creating more effective and efficient solutions.
Transparency: A Key to Success
For Charly, transparency within the organization is the cornerstone of Carta’s strategy. Charly highlights the importance of ensuring every team member, regardless of their role, understands the financial context and strategic goals of the company. This transparency fosters a culture of collaboration and innovation, as employees align their efforts with the organization’s broader vision.
"Transparency and education is critical, especially as you move really fast as a business. You cannot assume everybody in the business has the same financial acumen as you'd like them to have. And it's unfair to expect them to go to build that acumen. And so it's on the finance team to explain why are things moving this way. Why do we care about this? And constantly being able to educate the broader organization."
Regular all-company meetings and town halls are practical measures implemented at Carta to maintain open communication. These gatherings provide opportunities for various teams to share progress, challenges, and insights, enhancing the collective understanding of Carta’s objectives and achievements.
Embracing Technology
Charly discusses the ongoing shift towards automation and technological integration within finance functions. By investing in software and technical resources, Carta reduces manual processes, allowing the finance team to focus on more strategic tasks.
This approach not only mitigates risk but also supports the company’s scalability by aligning technology with business needs. The acquisition of Tactyc, an FP&A tool for fund management, highlights Carta's commitment to enhancing tooling for fund managers.
This move reflects Carta's broader strategy to provide comprehensive support to both private companies and the funds that invest in them, ensuring seamless management of financial complexities.
What Does the Future Hold?
Charly concludes with advice for finance professionals: engage with CFO networks and communities. Learning from others who have faced similar challenges can provide valuable insights and prevent costly mistakes.
Charly stresses that the continuous evolution of markets necessitates a dynamic and adaptable approach, where finance leaders are not just number crunchers but pivotal strategic partners within their organizations.
"The main advice I was given that I give to everybody is there are many networks of CFOs and I always strongly encourage people to join those. There's always somebody that solves something similar to what you will face. We all have very similar problems at similar stages."
Key Takeaways from This Episode
The modern CFO: Today's CFOs are strategic partners driving growth and profitability.
Cross-functional collaboration: Effective collaboration between finance and other departments is crucial for operational efficiency and, many time, a great customer experience.
Transparency and communication: Open and honest communication across the organization is essential for aligning teams and achieving strategic goals.
Leveraging technology: Using the right technology to automate processes and gain insights can significantly enhance financial operations and decision-making.
Continuous learning and networking: Staying updated on industry trends and learning from peers is vital for CFOs and finance leaders who want to continue growing.
Listen (and subscribe) on Apple Podcasts