Fractional CFO for adtech software companies
Adtech is one of the few sectors where revenue recognition is the biggest finance question. Whether media flows through the P&L as principal (gross) or only platform fee is recognised (net) changes the size of the business by an order of magnitude, resting on contractual control, pricing risk and credit exposure.
Gross-versus-net has to be defensible line by line, and contribution margin and take rate reporting makes sense regardless of which side the company sits on. Bad debt and advertiser credit risk are a material running cost needing reserves rather than discovery.
Flow provides financial modelling, FP&A and fractional CFO advisory to adtech software companies across DSPs and SSPs, ad servers and verification, retail media and CTV, programmatic and identity infrastructure, and creative and measurement tools. We work as the outsourced startup CFO through growth, fundraising and sale processes.
KPIs to track for "adtech software" startups
We're very 'KPI-driven' fractional CFOs, and we make sure to monitor the right metrics for your startup.
Net revenue
Gross revenue
Spend under management
Take rate
Net retention
Advertiser count
Customer concentration
Bad debt rate
Contribution margin
CAC payback
Financial modelling for "adtech software" startups
As fractional CFOs, we build KPI-driven financial models that are insightful and easy to maintain.
Financial modelling is both art and science - models must be robust, but also understandable, and useful for both internal planning and VC fundraising purposes. Hire a fractional CFO who knows how to handle both sides of the equation.
Principal-vs-agent revenue model
ASC 606 control analysis applied line by line to each media flow, with gross and net P&Ls reconciled side by side. Buyers and auditors see exactly why media is reported the way it is rather than taking a number on faith.
Take rate & contribution margin
Take rate built off spend under management with contribution margin reported regardless of gross-or-net presentation. Strips out the optical noise of media pass-through so the actual platform economics are visible.
Advertiser credit & bad debt reserves
Receivables aged by advertiser cohort with bad debt reserved against historical loss curves rather than booked when discovered. Forces explicit modelling of the credit exposure embedded in agency and direct-advertiser terms.
Spend-under-management cohorts
Net and gross retention on spend under management measured cohort by cohort, with budget shift, advertiser churn and new logo separated. Tells the board whether retained spend or new advertiser wins are doing the work.
Customer concentration & top-10 exposure
Revenue from top advertisers and top holding-co groups tracked with sensitivity on take-rate renegotiation. The concentration view diligence will run first is sitting in the model rather than discovered mid-process.
Cap table & SAFE stack
Pre/post-money cap table with SAFE conversions, option pool top-ups and waterfall scenarios specific to adtech round sizes. Founders see exact dilution before agreeing to terms with strategics or growth funds.
Founders and investors we've worked with
We've supported winning builders across adtech software and beyond.
Marcura
We acted as fractional CFO to Dubai-based Marcura, owner of maritime payroll and B2B payments platform MarTrust, advising on the strategic e-Wallet vendor selection and supporting product/finance integration.
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Hector
We acted as fractional CFO to Hector Aurumi, a Dubai-based specialist software house with AI/ML, IoT and data science expertise, providing confidential valuation guidance to the management team.
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Testim
As a fractional CFO we performed a confidential valuation of Testim, a Tel Aviv-based AI-based software testing automation platform, supporting Elevator Fund's portfolio management.
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Panorays
As a fractional CFO we performed a confidential valuation of Panorays, a Tel Aviv-based software platform for third-party security management, supporting Elevator Fund's portfolio management.
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Percepto
As a fractional CFO we performed a confidential valuation of Percepto, a Tel Aviv-based autonomous drone monitoring platform for critical infrastructure and industrial sites, supporting Elevator Fund's portfolio management.
See moreRecent fractional CFO track record
See our fractional CFO and financial modelling experience across adtech software and beyond.
Simple pricing
No hidden costs, no complicated long-term contracts. We understand how important flexibility is for adtech software startups.
Per month
- Accounting / FP&A tech stack implementation
- Monthly financial statements and reporting pack
- Quarterly board pack with detailed financial analysis (with variance analysis vs. budget, relevant KPI observations etc.)
- Investor-friendly output
Per month
- Everything in Core, plus
- Operating model (via an online platform like Runway or Excel-based)
- Ongoing model maintenance, refining projections, burn/runway management
- Customer cohorts modelling, churn and retention analysis
- LTV / CAC, unit economics analysis
- Cap table management
Per month
- Everything in Grow, plus
- M&A / fundraising support; review of business plan
- Pitch deck preparation
- Investor approach strategy / list building
- Due diligence support and deal negotiation
- Valuation as required and free access to Multiples Pro
Packages shown are illustrative, final pricing is tailored to client requirements.
Explore our fractional CFO offering for similar verticals
We're a specialized fractional CFO to software companies.
Our fractional CFO experience spans across all software verticals.
Explore other sectors
We know tech inside & out.
We provide fractional CFO services to companies operating across the entire tech.
More services
We help you scale by providing fractional CFO advice, through fundraising and a successful M&A exit.
VC fundraising for adtech software companies
We help you prepare materials, reach out to investors in our extensive network, negotiate fair term sheets and structure the VC round.
Learn moreM&A for adtech software companies
We advise winning tech companies on M&A exits, and over the years successfully executed numerous transactions with both financial and strategic buyers.
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Schedule a call to get a health check on your business and see how we could help.
Fractional CFO
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