Ask any start-up Founder and CEO how big her company is and she is bound to rattle off revenue, cash-flows and projected profits. But ask her if her founding team includes a finance expert, chances are that the answer is ‘No’.
“Given the emphasis on finance, valuations and million-dollar dreams that entrepreneurs set out with, it is ironical that too few start-ups actually have finance as an in-house function,” said Sachin Sancheti, Chief Technology Officer and Founder at the 18-month old cloud-service provider Scalable Solutions. “I have not yet met or heard of a technology start-up that has a finance expert as one of the co-founders.” This, he attributes to the fact that business ideas, which go on to become business offerings, typically emerge from technologists and business folk. “Before we start out on our own, we tend to meet with and ideate with those like ourselves in technology or project management teams. Rarely does a finance person figure in those sessions.” Mr, Sancheti got lucky, when a relative, a qualified accountant, was willing to bet his all on Scalable and wanted to be part of the founding team. “You need a co-founder you trust and with a close relative, trust comes first.”