Healthtech Startup
Synopsis
A fast-growing VC-backed tech start-up had hired multiple providers of outsourced finance and accounting services in order to build a makeshift team to deal with fraud and inaccurate accounting. The group was struggling to coordinate. Based on successful work with other portfolio companies, Eventus was brought in to consolidate and deploy a full-stack team.
Eventus immediately executed a clean-up while simultaneously providing CFO-level support to tackle diligence questions and enable the firm to raise additional equity, debt and ultimately position it for a successful series B equity raise. Eventus then transitioned the finance function to a new full-time team.
Service(s) Utilized
“Eventus immediately executed a clean-up while simultaneously providing CFO level support to tackle diligence questions, enabling the firm to raise additional equity and debt.”
Strategy & Course of Action
Speed and efficiency were critical. By the end of day one, Eventus had migrated client GL from a desktop to the cloud and taken over the finance function in its entirety. By the end of week one, Eventus’ CFO had presented to the leader of A5 Round and answered diligence questions. After three months an AR line of credit was negotiated and closed, twelve months of financial statements were re-stated to be GAAP compliant and provide metadata needed for financial reporting and forecasting. When necessary, Eventus leveraged various team members to write appropriate memos reviewing software capitalization, changes in COGS calculations, and new revenue recognition policies.
The Results
Eventus’ work led to the closing of an A/R line of credit for $2M and the $2.3M series A5. The clean books and records set the stage to raise a B round and our work in such a short period led the board to recommend Eventus to other related companies.
- Answered financial diligence questions required to secure A/R line of credit and close A5 raise
- Cleaned up books and records and made them GAAP compliant and audit-ready
- Built out processes to enhance financial reporting, projections, and modeling complex intercompany consolidations
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