Fractional CFO for DefenseTech companies
Defense tech finance is shaped by who the customer is. Government and prime revenue arrives under cost-plus, fixed-price or milestone-based programmes with percentage-of-completion accounting, multi-year backlog, contract modifications and audit obligations beyond commercial revenue. ITAR, EAR and FOCI controls then shape the cost base - segregated facilities, cleared headcount, restricted vendor lists.
We run percentage-of-completion correctly across the contract mix, report backlog and bookings against signed status rather than pipeline, and model cash around realistic milestone and government drawdown timing. Programme accounting is segregated so cost recovery is auditable. Export-control compliance is visible as programme overhead. Dual-use revenue is reported separately so commercial multiples aren't lost inside cost-plus economics.
Flow provides financial modelling, FP&A and fractional CFO advisory to defense tech companies across unmanned systems and counter-UAS, C4ISR and software-defined warfare, space and satellite defense, defense electronics and sensors, and dual-use cyber and autonomy platforms. Startup CFO support covers programme accounting, percentage-of-completion and export-control overhead.
KPIs to track for "DefenseTech" startups
We're very 'KPI-driven' fractional CFOs, and we make sure to monitor the right metrics for your startup.
Contract backlog
Bookings (programme of record)
Design wins
Active programmes
FMS / export approvals
Units delivered
POC / milestone revenue
Gross margin by contract type
Cleared headcount
Cash runway (months)
Financial modelling for "DefenseTech" 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.
Contract backlog and funded years
IDIQ ceilings, task-order awards and funded-versus-unfunded years tracked separately from total contract value, with realistic conversion to revenue. Stops a multi-billion ceiling number from being read as guaranteed revenue.
Percentage-of-completion accounting
Cost-plus, fixed-price and milestone-based programmes recognised under POC with estimate-at-completion revisions tracked each period. Aligns reported revenue with delivered effort and prevents reserve catch-ups at programme close.
Programme-level gross margin
Direct cost, indirect cost pools, fee and recovery rates modelled per programme so margin by contract type and customer is visible. Tells the board which programmes are actually profitable once allocated cost is loaded.
DCAA-ready cost structure
Indirect-cost pools, allocation bases and provisional billing rates structured for DCAA audit, with timekeeping and unallowable-cost segregation. Makes the cost base auditable from day one rather than rebuilt under pressure.
Dual-use and commercial split
Defense-programme revenue separated from dual-use and commercial product revenue, each with its own gross margin and growth driver. Preserves the commercial multiple that gets compressed inside a blended cost-plus P&L.
Export-control and cleared cost
ITAR / EAR compliance, cleared-headcount premium, segregated facilities and FOCI mitigation modelled as visible programme overhead. Quantifies the structural cost of being a credible defense supplier rather than hiding it in opex.
Founders and investors we've worked with
We've supported winning builders across DefenseTech and beyond.
Seagull Maritime
We acted as fractional CFO to Seagull Maritime, a Norway-based global leader in maritime cybersecurity, risk management and crisis response, providing confidential valuation guidance.
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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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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.
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TBô
We acted as fractional CFO to TBô, a Zurich-based tech-enabled DTC male underwear brand, building a bottom-up financial / operating model with cohort-level KPIs and positioning the company for its next venture round.
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Onlogist
We acted as fractional CFO to Onlogist, a Hamburg-based online marketplace for last-mile vehicle transfer, providing confidential valuation guidance and operating model support.
See moreRecent fractional CFO track record
See our fractional CFO and financial modelling experience across DefenseTech and beyond.
Simple pricing
No hidden costs, no complicated long-term contracts. We understand how important flexibility is for DefenseTech 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 industrial technology companies.
Our fractional CFO experience spans across all industrial technology verticals.
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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 DefenseTech 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 DefenseTech 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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