How A Life Sciences CFO Adds Value To Talent Strategy

How A Life Sciences CFO Adds Value To Talent Strategy

Most entrepreneurs and scientific founders acknowledge that labour markets have been very tight with talent in short supply for several years. Now economists are worried about stagflation in 2023, a situation defined by job losses and increasing price levels. How is your CFO helping you navigate these uncertain market conditions?

Life sciences CFOs should be able to advise on how to structure the employee option pool so that founder(s), key management and individual contributors are properly incentivized. The employee pool has a significant impact on pre- and post-money valuations at various funding rounds. It is also an essential lever when attracting top talent and retaining.

Capital markets have been devaluing tech stocks for the first half of 2022. Pressure on biotechnology, ecommerce and even diversified giants like Microsoft has pushed their valuations to pre-pandemic lows. As a result, start-ups that advanced to later funding rounds (think Series C or D) may not create near-term value for their investors given that the IPO option may be off the table while markets are depressed.

Later-stage start-ups have also been announcing layoffs and workforce reductions. Even Meta and NVIDIA have announced hiring freezes. Our firm empathizes with the management and employees of late-stage start-ups whose stock options are now deeply out-of-the-money. We are high conviction, though, that you should never let a good opportunity go to waste. And in every crisis, there's an opportunity.

Early-stage financing for start-ups that have positive unit economics, a solid go-to-market strategy and a clear path to profitability are still able to raise funds in the current environment. It stands to reason that solid start-ups will continue to need top talent.

Scientific founders must make decisions such as the percentage of fully-issued shares that should go to the founder, the executive team and the individual contributors. They should also assess their own tax attributes to determine whether a capital gain exemption should be crystallized, if a holding company or family trust is warranted and whether non-resident considerations are at play.

Our fractional CFO service can help you set up the right framework for your employee stock option pool (ESOP) and our Controllership services can help you maintain your cap table and report high-quality performance metrics to your investors.

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Rebecca Scott
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Rebecca is a Web Designer at BluePrint CPAs. She is a graduate of St. Clair College’s Internet Applications and Web Development Program and has worked as a freelance web designer before joining the BluePrint team.

BluePrint CPAs is a management consultancy that simplifies digital, financial and talent strategies. Our team helps entrepreneurs and their teams grow profitable and modern businesses.

Kit Moore, BluePrint CPAs President & Lead Tax Advisor
Kit Moore, CPA, CA
President & Lead Tax Advisor

Kit Moore, is an entrepreneur that simplifies digital strategy for other business owners. The team at BluePrint CPAs can assist you with web design, development, analytics, management systems and, more importantly, your overall business strategy. The toughest part of digital transformation is re-training your team - and we have pros to help with that as well.

BluePrint CPAs is a management consultancy that simplifies digital, financial and talent strategies. Our team helps entrepreneurs and their teams grow profitable and modern businesses.

Kit Moore, BluePrint CPAs President & Lead Tax Advisor
Kit Moore, CPA, CA
President & Lead Tax Advisor

Kit Moore, is an entrepreneur that simplifies tax and financial strategy for other business owners. The team at BluePrint CPAs can assist you with financial technology, tax strategies, mergers & acquisitions, succession & exit planning and, more importantly, your overall business strategy.

BluePrint CPAs is a management consultancy that simplifies digital, financial and talent strategies. Our team helps entrepreneurs and their teams grow profitable and modern businesses.

Joe Marra, MBA
Senior Associate, Strategy Consulting

Joe is a Senior Associate, Strategy Consulting at BluePrint CPAs. He is a recent graduate of the MBA Program at the Schulich School of Business and has most recently worked for Bayer Inc and the Ford Motor Company of Canada. His experience in marketing, sales, and human resources spans various industries including hospitality, logistics, life sciences and automotive manufacturing. Joe loves working with entrepreneurs to develop their digital strategies and help them grow their business.

BluePrint CPAs is a management consultancy that simplifies digital, financial and talent strategies. Our team helps entrepreneurs and their teams grow profitable and modern businesses.