An Outsourced, Fully Layered Finance Organization Scales with a Fast-Moving Biotech Startup and Rises to the Occasion During Key Strategic Moments

At A Glance

Company Type: Joint Venture Startup

Industry: Biotechnology

Solution Area: Emerging Growth, Outsourced Finance & Accounting, FP&A, CFO Full Stack

About The Client

Armed with about $100 million in funding over the course of five years, this Biotech JV startup is backed by venture capital and a publicly held company seeking to reposition itself by expanding into healthcare.

While waiting for the startup’s product to be ready for prime time, the latter company is responsible for its application development and managed services.

Solution

ZRG has covered all of the JV’s financial services, from setting up its accoutning and payroll systems; to covering its day-to-day accounting and financial management; to providing financial planning and analysis, and CFO-level strategic guidance.

• Develop dynamic financial models for ‘what-if’ scenarios planning as the product goes through the various stages of development
• Create a dynamic five-year financial model based on available cash flow and break-even expectations
• Design the chart of accounts with an eye toward an enterprise-level system in the near future
• Develop employee equity award tiering and manage the equity plan
• Obtain 409(a) valuations to determine strike price (multiple vendors)

Results

• Development of a streamlined, operational finance function, with appropriate systems and room to grow
• A clear view of the paths to profitability and the pros and cons of each
• A steady financial foundation as the company continues to progress toward its strategic goals
• Actionable insights for leadership whenever it’s needed, while they can keep their focus on running the business
• A reliable resource whenever important decisions need to be made

With ZRG, the startups’ leaders knew the financial operations were covered, and whether its strategic goals were within reach. Our timely insights supported their decision-making, putting them on the path toward growth.

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