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Important Rules for CEO and CFO when Raising Funds


For any business raising capital whether it is a start-up or a well-established company, can be an extraordinarily frustrating and time-consuming experience. Capital is required to operate and grow business. In every organization, the entrepreneur or CEO is responsible for raising capital.

CEO and CFO very often make some crucial mistakes, while attempting to raise capital. These mistakes not only indicate whether the business will be able to raise capital or not, but also what will the process, how long it will take and the ultimate cost of the capital.

Who are CEO and CFO?

CEO and CFO are the most senior manager of an organization whose main function and responsibility is to oversee the activities and working of the organization. Where CFO is a senior manager whose primary role is to oversee the management of the company’s finances and financial activities which includes

  • CFO

The CFO is also known as controller or treasurer. The chief financial officer also assumes a seat on the board and is the head of the company’s finance personnel as they are treated as the key financial spokesperson.

  • CEO

CEO is the senior manager person of the company whose responsibility is to look after the activities of the whole organization. As the officer manage different organizations, i.e. government entities, non-profit organizations, and private and public corporations.

The CEO is responsible for maximizing the value of the entity, including revenues, market share, share price, etc. and usually reports to the board of directors of the company whereas , In the government and NPO sector, chief executive officers seek to achieve output that relates to the mission and object of the organization.


What are the main rules for CEO and CFO when raising funds?

The primary role and function of CFO and CEO is to run the business in such a way to meet out the funding requirement. In addition, businesses, over time, need funding for various reasons. Raising funds from external sources, requires many strategies and compliances. However, it is important to follow the rules that will help the company to secure the funds faster, as a result, that can help in getting back to build the business and to execute the vision.

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The rules for CEO and CFO’s when raising funds are –

Role Play of the CEO and CFO about the Company’s Financials

Company’s financials, compliances, and related matters are the key factors that relate only from the CFO and CEO. CFO’s being a part of the fundraising team are responsible for the matters that relate to the financial matters in the Company. CFO and CEO should take due care for exercising the right policies and projections, and it can be done by participating in roadshow presentations (It’s on the company discretion  to have one or two senior executives, who are vital to the business, in addition to the CEO & CFO as part of the core fundraising team.

Not to rely on technology always

Technology has undergone major changes in the past few years and all technologies that didn’t exist a few decades ago. However, with new innovations that come to life every day, has made all people staying up-to-date on industry trends on a regular basis.

It is risky to rely on technology always, as the machines and gadgets might give up in the midway when you need them the most. The officers must keep the work process in such a way that the failure in technology will not result in failure in the work process.

For Example – The company showing the presentation on the laptop or by using their projector can go wrong any time. Same be the case of AVs in the meeting room begin to malfunction, in that case, it is best to carry printouts of your presentation this will result in a comfortable run of the presentation even in a Coffee Shop.

Proper Follow-Up and Speed

For raising a fund, A company needs to maintain speed and ensure the CFO and CEO are meeting as many investors as they can during the roadshow for raising fund and further, they have made sure that proper follow-up has been taken with the investor. Excessive time in converting the deal, might lose the excitement and interest you would have generated through your meeting from the minds of the investor. Moreover, the organization never knows when some external, uncontrollable factor could create negative sentiments, which as a consequence adversely impact the efforts you would have put in on this entire process.

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Perfection in Executing Strategy and Nurturing Relationships with the Source of Capital

As CFO performs a number of important and essential tasks as it acts as the right hand for the growth of the business. It provides analysis and offers key insights which help the CFO that what level of skill is required totally depending on the state of the company. Good and effective planning is required which cannot be replaced easily. Proper practice and list of comprehensive questions can be practiced through a mock presentation which will help the CFO and CEO to boost up and uplifting their confidence level at the time of answering the queries of the Investors.

Research and Analysis

CEO and CFO must undertake research about the investor and the team before meeting the concerned person. Different types of questions are asked to the investment banker to justify the queries of the investor, they must not only ask people in your networking circle but can also consider outsider as well as listening to recorded calls of Investors of other companies, in which the investor has already invested in. The entire process and follow up will assist the company in preparing and strategizing appropriately for the meeting.



For the rapid growth of the company it is required to expand the business and its structure. The role of CFO and CEO has taken a very positive shift due to advancements in technology and globalization which helps a company to grow very fast. You can hire CEO & CFO services as it is less extensive in comparison to in house hiring.

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