The majority of FinTech start-ups will go through many rounds of external funding to raise capital for their business. These funding rounds allow external investors to invest cash in a growing company in return for partial ownership or equity.
There are multiple funding rounds available for start-ups, with Series A funding usually helping businesses to catapult into new markets and expand product offerings. With this in mind, it is important that FinTechs have the right team in place to produce and implement the new strategy.
What is Series A funding?
Companies tend to go down the route of Series A funding once their business has established a user base and has consistent revenue figures. This will then be used to enhance its user base and product offerings by potentially scaling it across new markets. This round requires the development of a detailed business model that will generate long-term profit.
In a Series A funding round, investors tend to gravitate towards companies that have a great idea paired with a strong strategy which will make this idea a success. And so, it is common for companies going through this process to be valued at up to $23 million.
Given what is needed to qualify for Series A funding, who should be hired once you’ve received it?
Crucial characteristics of your new hires
After Series A funding, hiring becomes critical. It is important that companies hire a team of individuals who are flexible and can quickly deliver traction whilst also having the skills to scale the product or service long-term.
New hires need to have a can-do attitude and an ability to adapt to the new roles, situations, and demands that a fast-growing company requires. The team must be able to quickly spot issues, resolve them, and work together to find solutions for potential challenges.
The three questions companies should be asking themselves when interviewing a potential hire are:
- How can they help deliver your product and build the marketplace?
- How will they deal with constant change and challenges?
- Do they have the passion to give the role everything they’ve got?
The roles you need to hire
A Chief Technology Officer, VP of Engineering, or any other executive or director engineering role will be vital as your business looks to scale operations. Engineers are the source of innovation within FinTech businesses and will provide the skills needed to enhance the capabilities of the product.
If the product isn’t a success, the business won’t be either. . Hiring a VP of Product Management or any other senior product role will help to fine-tune the product design and action the development of potential new products in line with the strategy.
Sales & Marketing
Sales and marketing will help catapult your business to reach the goals outlined in your strategy, and so it’s incredibly important that you have a Chief Marketing Officer, VP of sales, or any other senior sales and marketing role. They will help the business to think more strategically about acquisition and retention to optimize the existing user base and build upon it.
These three areas are crucial for taking a FinTech business to the next level after a series A funding round. They will all work together to increase revenue, product offerings and user base to hit the targets initially set out when applying for funding. Ultimately, putting these roles in place will scale the business and help it prepare for the next round of funding: Series B.
Have you just completed a Series A funding round and are looking for people to help scale your business? Get in touch. Our specialist Consultants can advise you on the process and connect you with their network of highly skilled FinTech talent.