Rapid Response: Finance Leadership for a High-Growth Healthcare AI Startup

The Client

Our client was a rapidly growing healthcare technology startup founded in 2014 and based in the San Francisco Bay Area. The company specialized in developing machine learning algorithms to enable early disease detection and improve patient care outcomes. Their flagship product was an AI algorithm designed for early sepsis detection in hospital settings—a condition that affects over 1.7 million Americans annually with a high mortality rate.

Having secured $50 million in Series B funding led by prominent healthcare investors in 2020, the company was experiencing significant growth and had ambitious plans. They had recently received FDA emergency use authorization for a COVID-19 algorithm and were positioning themselves for potential future fundraising or IPO activities.

The Challenge

Following their successful Series B funding round, the company was working to build out its internal finance team and required senior financial leadership to execute from both a financial project management and controller perspective. They needed a CPA with strong financial acumen who could work cross-functionally across the organization.

The specific challenges included:

• Converting 2019 and 2020 financial records to accrual basis accounting
• Preparing for comprehensive audits of both fiscal years
• Establishing proper monthly closing procedures for 2021
• Implementing internal controls, including SOX 404 compliance measures
• Setting up an FP&A function with proper budgeting and reporting processes
• Creating the company's first consolidated budget with appropriate schedules and calendar
• Establishing financial reporting standards that would be timely and accurate
• Developing a hiring plan for the finance team

This role was particularly critical as the company was contemplating an IPO for Q4 2021 and needed to rapidly establish financial infrastructure appropriate for a public company.

Our Approach

Given the urgency and importance of this role, we initiated a highly targeted search for senior finance leaders with relevant experience. Our team moved with exceptional speed, completing the entire search process in just 7 days from start to finish.

Our approach included:

• Thoroughly understanding the client's business model, growth trajectory, and specific financial needs
• Identifying candidates with strong CPA credentials, healthcare sector knowledge, and public company experience
• Focusing on professionals with demonstrated ability to build finance teams and implement systems in high-growth environments
• Prioritizing candidates who could balance technical accounting requirements with strategic financial planning

Recognizing that a single hire might not address all the company's needs, we developed a strategy to present multiple complementary candidates who could collectively fulfill different aspects of the client's requirements.

At ECA Partners, we specialize in on-demand finance talent and can rapidly provide the experienced financial leadership companies need at critical growth stages.

The Placement

We successfully placed two complementary finance leaders who brought different but highly valuable skill sets to the client:

Candidate One: Controller/Technical Accounting Lead

• Experienced CPA with strong technical accounting background
• Prior experience preparing companies for public audits
• Expert in implementing accounting controls and SOX compliance
• Proven track record in transitioning companies from cash to accrual accounting

Candidate Two: FP&A and Strategic Finance Lead

• Financial planning expert with extensive experience in high-growth environments
• Background in creating budgeting processes from the ground up
• Experience developing financial reporting systems and driving data accuracy
• Skills in building financial models and presenting insights to executive teams

This dual placement approach allowed our client to address both their immediate technical accounting needs and their strategic finance requirements simultaneously.

The Outcome

The impact of our placements was both immediate and substantial. Within four months of joining the company, our candidates achieved remarkable progress:

Controller/Technical Accounting Lead:

• Built out a finance team of 7 full-time employees to support the company's growth
• Successfully closed the books for 2019, 2020, and Q1 2021
• Advanced the audit process significantly, approaching completion
• Established monthly closing procedures and financial reporting for the executive team
• Created the company's first board presentation packages and financial decks

FP&A and Strategic Finance Lead:

• Developed multiple financial plans that were successfully reviewed by the executive leadership team
• Implemented new tools and processes that improved the accuracy of financial reporting
• Created frameworks for comparing actual results against budgets
• Established internal controls and reporting systems
• Contributed to MD&A (Management Discussion and Analysis) preparations

Together, these finance leaders put the company on solid financial footing, with transparent financial processes that allowed leadership to make strategic decisions in a rapidly changing healthcare landscape. The IPO preparation process stayed on track, and the company successfully built out its financial infrastructure.

Our ability to identify, evaluate, and place these critical finance leaders in just one week demonstrated ECA Partners' exceptional capabilities in rapid, high-quality executive search for high-growth companies in specialized industries.

Interested in how we can help your organization with similar finance leadership needs? Contact us today to learn more about our interim and on-demand finance solutions.