Is your startup burning cash without a clear financial plan? You’re not alone. Founders are turning to fractional CFOs — seasoned finance leaders who bring expertise without the full-time price tag. Demand is up 103% year over year. It’s fueled by startups that need financial leadership but can’t afford a $500k+ salary.
It’s a natural move.
Startups crave strategy but often can’t justify a full-time CFO. Fractional CFOs step in with proven experience on a flexible schedule. They help you make better decisions when the stakes are highest. According to LinkedIn, about 114,000 professionals offered fractional CFO services by late 2024. That’s explosive growth. And the finance and accounting outsourcing market could hit $76.4 billion by 2033, rising at 5.75% a year from 2025.
In this guide we'll cover:
- Why startups benefit most when they hire fractional CFOs
- How fractional vs full-time CFOs compare
- What fractional CFOs actually do
- Where to find the right one
- And how modern platforms like Runway are changing the CFO role itself
Why hire a fractional CFO: key benefits for startups
Startups live in fast-forward. Growth, uncertainty, and tight budgets collide every day. Fractional CFOs bring agility — and that’s huge.
They’re cost-smart. A full-time CFO can run $500,000–$600,000 a year. A fractional CFO costs $60,000–$120,000. That frees cash for runway, key hires, and product.
They know startup finance. They’ve managed fundraising, volatile cash flow, rapid scale, and hard pivots. They bring proven playbooks and pressure-tested metrics.
They’re flexible by design. As you raise, launch, or expand, you can scale their scope up or down. That matches how startups operate.
What you get:
- Strategic finance without the full-time price tag
- Clean models, sharper forecasts, and cash visibility
- Investor-ready reporting and board dashboards
- Fundraising support, from data room to terms
- Spend discipline, burn control, and longer runway
- Finance ops that scale with the team
Fractional vs full-time CFO
The difference isn’t just hours. It’s focus.
Full-time CFOs build and run the entire finance function. They manage larger teams and handle the details, day-to-day. They’re in it deep, all the time.
Fractional CFOs target strategy and high-impact projects. They build financial models, guide big decisions, and set up frameworks that others run with. Early startups often need fractional CFOs for 8–10 hours a month. When things get more complex, it’s 20–30 hours — but still flexible and lean.
You’ll see two main engagement models:
- Project-based (like prepping for a raise)
- Monthly retainers (ongoing support as you grow)
Most engagements last one to two years — usually until you’re ready for full-time leadership.
Go full-time when your ops are complex, you’ve got a big team, or regulatory demands are constant. Managing M&A? Juggling multiple entities or heavy compliance? You’ll need someone in the seat day in, day out.
Core responsibilities of a fractional CFO
Fractional CFOs shine in five areas:
- Revenue forecasting — building projections so you can set and hit realistic goals
- Expense management — spotting trends, finding savings, and helping you invest where it counts
- Headcount planning — deciding when to hire, why, and how each role maps to growth
- Fundraising support — prepping projections, building decks, and guiding diligence (they know what investors want to see)
- Cross-functional collaboration — working with sales, marketing, and product to ground every decision in financial reality
Expense management isn’t just about cutting costs. Fractional CFOs analyze spend, spot what’s working, and help you put money where you’ll see results. With tools such as Runway's Headcount Planning, they can let you see financial impact from hiring decisions, in real time.
Fundraising is a trigger point for many startups. Fractional CFOs prepare you for investor meetings, build robust models, and guide you through the due diligence process with confidence.
This role bridges teams. A great fractional CFO integrates with sales for pipeline forecasting, supports marketing with unit economics, and guides product through financial implications. That means planning doesn’t happen in a silo. It’s everyone’s job.
When growth hits high gear, cash flow management becomes critical. Fractional CFOs set up tracking systems, forecast needs, and help you avoid the cash crunch.
When to hire a fractional CFO (or go full-time)
How do you know it’s time to bring in a CFO? Watch for these signals:
- Revenue is growing fast and it’s getting hard to manage
- Unit economics are unclear
- It’s tough to predict cash needs
- Gross profit margins are slipping even as revenue rises (classic sign of growing complexity)
- Big financial choices (like new investments or partnerships) are on the table
Here’s a quick rule of thumb:
- Under $2M ARR — outsource your accounting
- $2M–$10M ARR and scaling — fractional CFO fits best
- Above $10M ARR or prepping for an exit — hire full-time
But don’t use revenue alone. Unique revenue models, multiple customer types, or international growth can all mean you need CFO support sooner. If fundraising is on the horizon in the next six to twelve months, bring in a fractional CFO now. The ROI shows up fast with better valuations and smoother deals.
What to look for when you hire a fractional CFO
Industry experience trumps generic credentials. Look for a CFO who’s already tackled your business model and understands your growth levers. SaaS, e-commerce, hardware — each has its playbook.
Dig into their financial modeling skills. Are they building from scratch or plugging numbers into templates? How do they run scenario planning? Their answers reveal if they’re a fit for your company’s vision.
Cultural fit is huge as well. Fractional CFOs need to click with your whole team and explain finance clearly. You want someone who’s approachable, and who gets buy-in across departments.
Tech stack matters too. The best fractional CFOs use cloud tools, planning platforms, dashboards, and scenario planning. If they’re glued to Excel, you won’t get the efficiency or real-time insights modern startups need.
Ask for references from startups at your stage. Find out about their communication style, speed, and how they delivered under pressure. If your main goal is fundraising, get fundraising references.
Where to find a fractional CFO
Tap your network first. LinkedIn makes it simple to search and vet candidates with actual fractional experience.
Specialized platforms connect you with vetted execs fast—try Paro, Toptal, or Shiny. Consulting firms, such as CFO Hub, Burkland Associates, GrowthLab, Forecastr also match you with professionals, and have tried-and-tested processes.
Referrals are gold. Ask fellow founders, investors, or advisors for names. Their honest feedback puts the right talent in reach.
When you interview candidates, look for:
- Results with companies like yours
- Clear, specific examples of impact
- A value-driven pitch — they should tell you exactly how they’ll help
How Runway is transforming the CFO role
The role itself is changing. As Siqi Chen, CEO of Runway, says: “The CFO's job used to be about control and cost — now it's about speed, clarity, and strategic leverage. And AI is the accelerant.”
Fractional CFOs deliver more value when they use modern tools.
- Runway’s collaborative forecasting means your whole team can contribute, right in the tool. No more endless email chains or data silos. Planning gets faster and more accurate.
- Scenario planning now happens in real time. Fractional CFOs can show instantly how hiring, sales, or the market move your numbers. That supports confident decision-making on the fly.
- With seamless integrations, data syncs from all your systems into one place. Less time on manual work, more time on real strategy.
Runway turns finance into a shared map the whole company can navigate. For fractional CFOs, that means faster insights and bigger impact.
Moving forward with confidence
Hiring a fractional CFO is a milestone. It’s a smart investment in clarity, discipline, and strategy.
The key is finding the right one—someone with relevant experience, cultural fit, and modern tools. Get that right, and you’ll gain more than financial oversight. You’ll gain leverage.
Platforms like Runway extend that leverage further with faster planning, better collaboration, and smarter decisions.
Ready to stop firefighting, and start leading? Book a demo with Runway and see how the right support can change your company’s trajectory.