Elevating Financial Planning & Governance at a Healthcare SaaS Startup

Challenge 

This venture-backed SaaS company in the healthcare space having raised more than $10MM needed to elevate their financial planning and governance. They have a platform that helps hospital systems plan their CapEx and maximize or optimize their use of capital equipment. The company was at a turning point. They had developed the product, built a solid team, and started to gain market traction. They needed to raise more capital to fund the next stage of growth. Alongside the fundraising effort, they were looking to increase the corporate rigor and cadence around accounting, governance, board reporting, and financial planning.


Solution

We helped the technical founders systematize their financial planning and governance from basic financial closes to cap table management and investor relations. One of the first steps was to institutionalize the financial planning process; building their Annual Operating Plan (AOP) and Long-range Plan (LRP). This was critical for developing a pay for performance structure for the team and for kick starting the fundraising effort. As part of the financial planning process, we met with all department heads to gather their roadmaps which ensured that each P&L manager is part of the budgeting and goal-setting process which is key to success.

In addition, the company needed to be able to update their cap table and develop the ability to run multiple cap table scenarios involving new capital, options, RSUs, and warrants. This was critical to ensure that existing shareholders and the management team had full visibility into ownership and potential dilution with any new raise. This effort, over the course of several months, included discussions with the Board and individual investors focusing on getting all players on the same page.

Once these pieces were in place, our focus turned to establishing a regular cadence of investor and Board reporting to provide respective parties with timely and accurate financials as well as management discussion about historical and forward-looking business performance. Our accounting team and FP&A team did a full review and update of the chart of accounts with an eye toward their anticipated revenue model and expenses. This effort both simplified their accounting processes and yielded better insight for the management team.

Financial Planning & Governance in Healthcare SaaS Startup
 

Results 

In partnering with this company, we elevated the financial planning and governance by improving corporate rigor and cadence for accounting, financial reporting, and Board management. The management team spent less time working in the business (doing work) and more time working on the business (driving growth), which is one of our core goals with all customers. This was driven by systematizing accounting and reporting which drove better and faster decision-making. 

Customer Highlights

The founders of this emerging growth SaaS healthcare company turned to GrowthLab at a critical juncture of their history to manage their finance and accounting value stream, to build rigor and cadence in corporate governance and board management, and to structure their leadership team.

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About GrowthLab

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Tizra

“GrowthLab has provided invaluable tools and advice to Tizra’s management team, helping us scale smoothly and confidently.“

Abe Dane, CEO at Tizra

NAMI Rhode Island

“GrowthLab earns my highest praise for professionalism and affordability. I have hired them to improve our financial reporting... they were hands-on, patient, and able to move our organization... to an up-to-date and easy-to-use system.”

Christine Earley, Ph.D. Board Member & Treasurer at NAMI

The Purple Carrot

“…well-versed in all areas of finance, providing strategic guidance for early- stage start-up businesses… possesses a great work ethic, deep insights into financial analysis and modeling, and a collaborative approach to his work. An asset to any team.”

Andy Levitt, Founder & CEO at Purple Carrot

FluidSense

“GrowthLab is a tremendous partner for FluidSense. Allowing our core team to focus on engagement and development, while GrowthLab focuses on the financial and bookkeeping aspects.”

Jeff Poole , COO at Fluid Sense

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