Each funding stage maps to a rough headcount and revenue band, and the first finance hire lands at a predictable point inside that sequence, usually around a big seed or Series A round, 10 to 20 heads or $5 to $10 million ARR. Founders who wait past that point are usually the ones scrambling to get finance foundations in place once a raise is already underway.
The stages, in order
Pre-seed and seed rounds fund getting to product-market fit, usually from angels, a pre-seed fund or friends and family, on a SAFE, a convertible note, or a small priced round. Series A is the first institutional round priced against real traction, followed by Series B and C as the business scales revenue and, eventually, moves toward profitability or a later-stage raise. Running alongside all of it, and easy to forget under the pressure of an equity round, are the non-dilutive routes: government grants, and in Australia specifically the R&D Tax Incentive, which returns cash for eligible development work without selling a single share.
Where the first finance hire actually lands
A first finance hire, an FC, Head of Finance or Finance Lead, typically comes in around a big seed or Series A round, for businesses that have raised $10 to $20 million, or smaller businesses around $5 to $10 million.[1] I focus exclusively on placing that first finance hire and the first CFO, seed through light Series A, B and sometimes C depending on complexity, for tech, fintech and deep tech businesses, because that is where most of the funding in this market is actually going.[2] I am also happy to give founders free advice on what they actually need for capital raising, runway, or the R&D Tax Incentive, before any commercial conversation about a search.[3]
| Pre-seed / seed | Series A and beyond | |
|---|---|---|
| Typical finance function | Founder plus a bookkeeper or part-time contractor. | A dedicated first finance hire, moving toward a first CFO. |
| What investors expect to see | A believable model, not audited history. | Clean monthly reporting, a defensible cap table, real forecasting discipline. |
| Non-dilutive options | Grants and R&D Tax Incentive claims, often left on the table. | Actively modelled alongside the next equity or debt round. |
| Diligence depth | Light: a data room is barely needed. | Real: cap table, close and model all get tested. |
I set out the exact headcount and ARR thresholds in when to make your first finance hire.
Once a raise is actually underway, here is how the process runs, and who should own it.
Common questions
What are the main startup funding stages?
Pre-seed and seed fund the path to product-market fit, usually from angels or a small priced round. Series A is the first institutional round priced against real traction, followed by Series B and C as revenue scales. Non-dilutive routes, grants and Australia's R&D Tax Incentive, run alongside all of it.
When should a startup make its first finance hire?
Typically around a big seed or Series A round, for businesses that have raised $10 to $20 million, or smaller businesses around $5 to $10 million ARR. Waiting past that point usually means scrambling to build finance foundations once a raise is already underway.
What is the R&D Tax Incentive, and why does it matter for funding?
It is a non-dilutive route: eligible Australian businesses claim cash back for development work without selling any equity for it. It is easy to forget under the pressure of an equity round, which is exactly when it is worth modelling alongside the raise, not after.
Does Story Recruitment give free advice on funding, not just hiring?
Yes. I am happy to give founders free advice on what they actually need for capital raising, runway, or the R&D Tax Incentive, before any commercial conversation about a search.
References
- A first finance hire I place typically lands around a big seed or Series A round, for businesses that have raised $10 to $20 million, or smaller businesses around $5 to $10 million.
- My focus is exclusively the first finance hire or the first CFO, seed through light Series A, B and sometimes C depending on complexity, in tech, fintech and deep tech, because that is where most of the funding in this market is going.
- I'm happy to give free advice to founders on what they actually need for capital raising, runway, or R&D tax, before any commercial discussion.
These guides set out how we see it, drawn from the searches we run and the finance leaders we place. They are general information about the market, not financial, accounting or legal advice, and they are no substitute for advice on your own circumstances.