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TechCXO Returns to Inc 5000 List

August 28, 2024 by Megan Esposito Leave a Comment

TechCXO, the pioneer of on-demand executive leadership services, returns to the Inc. 5000 list of Fastest Growing Private Companies. The company has been on the list for 15 of the last 16 years.

ATLANTA, AUGUST 28, 2024 – In an outstanding affirmation of its enduring excellence and growth, TechCXO, the pioneer in providing on-demand executive leadership, proudly announced its return to the Inc. 5000 list of America’s fastest-growing private companies for 2024. TechCXO’s consistent presence on the Inc. 5000 list for 15 out of the last 16 years is a testament to its unwavering commitment to empowering clients and fueling their growth. The firm appears on other Inc. lists: #199 in Georgia, #500 in Business Products & Services, and #187 in Atlanta.

TechCXO was founded in 2003 on the premise that companies can benefit from having the best executive talent available to serve as their CFOs, CTOs, CSOs, CMOs, CROs, COOs, CHROs and other executives on a fractional, part-time, or project basis. Companies might not otherwise be able to access the talent and experience level of a TechCXO partner and teams due to cost or availability.

Kent Elmer, Managing Partner of TechCXO, expressed his enthusiasm for the company’s latest accomplishment, “Being recognized once again on the Inc. 5000 list is a testament to the hard work and dedication of our team to excellent client service. Over the past 20 years, we’ve been committed to changing the game in fractional executive leadership, and our repeated inclusion in the Inc. 5000 underscores our success in this arena.”

Read Full Press Release

Filed Under: Executive Operations, Finance, Human Capital, News, Product and Technology, Revenue Growth Tagged With: News, Popular

TechCXO Reports Full-Year Revenue Growth for 2023; 20th Straight Year of Top-Line Growth

March 12, 2024 by Megan Esposito Leave a Comment

ATLANTA, MARCH 12, 2024 – TechCXO, a pioneer in providing industry-relevant, on-demand executives delivering fractional and interim professional services, reported an increase in annual service fees in 2023 over 2022 to $56 million. TechCXO has increased revenue every year since its inception in 2003.

“TechCXO is in the strongest position in our history. We now have more than 120 partners – the most ever. Our partners love our collegial environment and how our model enables them to impact their clients directly and positively,” said J. Kent Elmer, TechCXO’s Managing Partner.

“Today, we’re seeing staffing and search companies, consultants, and business coaches claim to provide fractional executive services. That’s a testament to the success of our model,” Elmer added. “However, we know after two decades in business that the depth of partners’ expertise – every one of whom has been in multiple c-suite roles – and the team of professionals supporting them is a big differentiator.”

TechCXO was founded in 2003 on the premise that companies can benefit from having the best executive talent available and serving as their CFOs, CTOs, CSOs, CMOs, CROs, COOs, CHROs and other executives on a part-time or project basis. Companies might not otherwise be able to access the talent and experience level of a TechCXO partner and teams due to cost or availability.

Read Full Press Release

TechCXO has assisted thousands of start-up and growth-stage clients in its history. In addition to executive support, companies can also outsource their entire Finance, Sales & Marketing, IT, HR, and Operations functions to TechCXO for 50-75% less than it costs to staff full-time, loaded salaries. All TechCXO partners and staff are U.S. and U.K.-based.

About TechCXO

TechCXO is a pioneer in providing high potential companies across the country with industry-relevant interim and part-time executives on-demand. More than 5,000 companies, from startups to the Global 1000, have entrusted TechCXO to help with their critical functions by calling on TechCXO executives and teams as their CFOs, COOs, CSO, CTOs, CMOs, CHROs and other executive roles. TechCXO has appeared on the Inc. 500/5000 Fastest Growing Private list every year since 2008. For more information about the firm, please visit https://www.techcxo.com.

Filed Under: Executive Operations, Finance, Human Capital, News, Product and Technology, Revenue Growth Tagged With: News

TechCXO Names Nicole Siokis as Chief Operating Officer

October 30, 2020 by Megan Esposito

TechCXO is pleased to announce that it has named veteran executive Nicole Siokis as Partner, Chief Operating Officer. Ms. Siokis will help guide the firm’s continued nationwide growth and international expansion.

Nicole joined TechCXO in February 2018 and has been focused on organizational structure, internal business process review, and firm profitability. In her new role, she will focus on firm growth by practice area and geography, firm profitability and new strategic initiatives.

Nicole, a US Army combat veteran, previously served as President & Owner of the Atlanta branch for a national strategic workforce solutions firm. She was also an Associate Partner for a well-known executive search firm where she was responsible for strategic partnerships with senior business and HR leaders. In addition, she worked for a major telecommunications company based in Atlanta where she served as Director for Small Business Marketing, as well as Director for Domestic and International Carrier Relations. She is a graduate of Clemson University. (read Nicole Siokis’ full bio).

“Nicole is a very skilled operational executive. She’s highly organized, understands how to motivate and mobilize talented people, while maintaining focus on growth and profitability,” said TechCXO Managing Partner and Co-Founder Kent Elmer. “She’s the perfect combination of skills for what TechCXO needs going forward.”

“We’re entering a new era of expansion and broader services, and Nicole is one of the people we’re relying on to help guide us. It is a pleasure to have her overseeing many of our critical operations,” added TechCXO Co-Founder Mike Casey.

You can read the full press release here

Filed Under: General Tagged With: News

TechCXO Client MemberSuite Raises $11M Series B

October 30, 2020 by Megan Esposito

TechCXO client MemberSuite raised $11 million of Series B venture funding from lead investor Revolution Ventures on September 26, 2016.   Fidelis Partners, Angel Investment Management, Accomplice Partners and Alerion Ventures also participated.

The company plans to use the funding to add over 50 team members, with a focus on hiring in sales, marketing and engineering in the Atlanta region. With the round, the company has now raised a total of $19.6 million in funding to date.

MemberSuite is a provider of association management software (AMS) for associations and nonprofit organizations. The company develops software that helps trade associations manage fundraising, event planning, accounting, dues-collection and other functions.   It delivers its web-based, back-office software on a subscription basis.  TechCXO partner Todd Guthrie is engaged with MemberSuite.  Read the full release here.

 

Filed Under: General Tagged With: News, Raising Capital

QuikOrder Acquired by Pizza Hut

October 30, 2020 by Megan Esposito

Congratulations to our client, QuikOrder, for being acquired by Pizza Hut. TechCXO supported QuikOrder with finance and accounting services for close to two years, including M&A support by assisting in due diligence pre-sale and interim CFO services from TechCXO’s Bob Brogan.

QuikOrder, is Chicago-based and a leading online ordering software and service provider for the restaurant industry. Terms of the deal were not disclosed, but it marks one of Pizza Hut’s largest acquisitions to date.

By acquiring QuikOrder’s online ordering capabilities, Pizza Hut U.S. will improve its ability to deliver an easy and personalized online ordering experience and accelerate digital innovation across its base of more than 6,000 restaurants in the U.S. In 2018, approximately half of Pizza Hut U.S. sales were processed through QuikOrder’s platform. Founded in 1997, QuikOrder specializes in developing and maintaining internet-ordering systems used across the QSR industry. It has served Pizza Hut U.S. for nearly two decades. Over that time, it has built an expert team that fully understands and meets Pizza Hut’s specific needs. The acquisition will include: Pizza Hut’s current digital ordering platforms, systems and services and QuikOrder’s in-restaurant technology and ancillary services, as well as its future generation products and programming.

Read more:

Chicago Sun Times
Chicago Business
PRNewswire

 


techcxo-10-time-fastest-growing
Bob Brogan is a senior Strategy, Operations & Finance executive recognized for identifying and delivering profit-improvement objectives for software as a service, professional services and technology companies.
bob.brogan@techcxo.com
(708) 243-7004
See Bob’s full bio

 

Filed Under: General Tagged With: CFO, Mergers and Acquisitions, News

Thoughts and Takeways from SaaStr 2019

October 29, 2020 by Megan Esposito

For a second straight year, I attended the annual SaaStr conference in the Bay Area.  SaaStr is a community of thousands of people – Founder CEOs, VC & PE investors, operators, and service providers of all stripes – that focus their business efforts around the proliferation of software-as-a-service, which is arguably the dominant business model of our day, penetrating all corners of the economy.  There are so many rich takeaways from the conference that it’s impossible to do it justice in a short narrative — but three key learnings come to mind and are summarized below:

Viraj Parikh TechCXO

Viraj Parikh is TechCXO’s Managing Partner in Nashville

  1. Do not underestimate the value of a Business Operations leader: One of my favorite sessions was with the Co-Founder/CEO of Glassdoor, Robert Hohman, and Neeraj Agrawal of Battery Ventures, a leading Silicon Valley VC firm. Robert spoke about how critical it was to fill various ops roles, including sales ops and, most notably, “biz ops.”  Robert spoke about a conversation he had with one of his board members from Google about how critical this position was in Google’s early days; hiring for it ultimately transformed Glassdoor.  The Biz Ops leader’s function is to understand the key drivers of the business at a deep level, and work horizontally across every part of the business to answer questions.  Allowing this position to go unfilled will come back to haunt you.  It is not an obvious hire because there is often not an immediate payback.  When this position was filled at Glassdoor, about two years late according to Robert, it was not one big thing wrong with the company, but 50 medium things – and it took three months just to unpack it all.  Those 50 things can add up to be an existential threat to the company, since you know something major in the company is going to break, but it is impossible to even identify the break point.  Once identified, it  takes courage to make the necessary decisions to fix it, but the only way to make these decisions is to have a business operations leader who understands how everything in the business is tied together.
  1. The biggest challenge founders face in scaling up their organizations: Many of the sessions at SaaStr were devoted to the intricacies and hiring path necessary to scale businesses. Of course “scaling” means different things at different stages ($5mm ARR, $20mm ARR, $50mm ARR, etc.), but from a founder’s perspective, Hubspot CEO Brian Halligan’s paraphrase of Aaron Levie, CEO of Box, made the point perfectly: “Your success in the early days of your startup is largely a function of you getting very good at doing all the jobs that must be done, while the success factors in a founder’s scale-up is to get really good at doing none of those jobs.  You must get out of everyone’s way and allow people to specialize at doing their respective jobs really well.  Your superhero strengths in startup mode – being a control freak – becomes kryptonite at scale.  You must find a way to back out of the day-to-day, and find other things to do to add value.”  Your greatest strengths as a founder can often become your greatest weaknesses in the scale-up process of your company.
  1. Is your SaaS startup growing fast enough to attract venture capital?: Rory O’Driscoll from Scale Venture Partners gave a compelling argument that a “Mendoza” line exists for startups – essentially a curve plotted against various ARR and growth rates – above which a company makes for an interesting venture capital investment, while below it would imperil the chances for a VC investment and eventual IPO. This is not a hard and fast rule, but rather a handy rule-of-thumb as well as an aspirational goal:

 

A corollary to this rule is that best-in-class SaaS companies, after reaching $10 million in ARR, exhibit growth rates that decline at a fairly predictable rate: roughly 80%-85% of the prior year’s growth rate. Rory’s term for this rule is “growth persistence” – the above table uses a growth persistence of 82%. Although the vast majority of successful SaaS companies lie above this curve, faltering below it does not spell doom – it is possible to reaccelerate again, but recovery and maintaining at a high level is never easy once altitude has been lost. Rory’s blog post can be found here.

Conclusion
Software penetration into the economy remains in the early innings. As much as technology has been weaved into our everyday life, there is still a long way to go. One of the gratifying things about this year’s SaaStr conference was seeing the large number of non-Silicon Valley CEO founders and companies – not just getting funded, but prospering. World class business models and cutting-edge business practices are proliferating in mini tech hubs across the country and world. The abundance of capital will continue to fund countless new products and services, and the number of fortunes to be made will not abate for the foreseeable future.


Viraj Parikh TechCXO

Viraj Parikh is TechCXO’s Managing Partner in Nashville

Filed Under: Finance Tagged With: Business Planning for Startups, Key Performance Indicators, News

Peter Biro – Why choose TechCXO?

October 29, 2020 by Megan Esposito Leave a Comment

Why would an accomplished entrepreneur, CFO, Stanford MBA with an engineering degree from Duke choose the TechCXO on-demand executive model for his career? We asked him (Peter Biro).

Peter Biro is an experienced operating and financial executive and entrepreneur with deep experience in enterprises from pre-revenue to $100M. Peter is focused on early-stage infrastructure, software and SaaS businesses in need of assistance in fundraising and transaction execution, scaling their finance and sales operations processes functions, and taking their businesses global.

He specializes in financial transactions, from financings to M&A to optimizing economics of different sales channels, for companies up to $50M in revenue.  He also specializes in assisting Israeli-based technology companies.

He has served in a variety of operating roles in technology companies:

  • CFO of ObserveIT – An Israeli security software company backed by Bain Capital Ventures.
  • VP of Business Development of syndicated data provider Restaurant Sciences (merged with GuestMetrics).
  • COO of of Lyris, Inc. (acquired by Aurea) – A publicly-traded digital marketing software, which he helped create through a number of complementary acquisitions.
  • Co-founder of Five Guys Burgers and Fries – The Northeast’s largest franchise group.
  • Entrepreneur in Residence – General Catalyst Partners. Peter vetted transactions and helped launch Icelandicdata center company, Verne Global.
  • Founder of The Cowper Group – A management consultancy focused on buy-side M&A for middle market technology companies

He began his career in IT on Wall Street.  Peter holds a BSEE from Duke University and an MBA from Stanford.

Filed Under: General Tagged With: CFO, News

Robotic Automation Leader and TechCXO Client Soft Robotics Raises $20M

October 29, 2020 by Megan Esposito

Soft Robotics’ proprietary materials and machines are doing incredible things for food, beverage and advanced manufacturing industries. The company’s innovation allows a robot to grasp and manipulate items of varying size, shape and weight, including a tomato, bagel (see images) and even cupcakes. TechCXO is proud to have assisted Soft Robotics’ capital raise of $20M in an oversubscribed funding round.  Boston-based TechCXO Partner Peter Biro has been assisting Soft Robotics in accounting and finance functions, as well as advising the company on its capital raise.

The following is from Soft Robotics’ press release:

CAMBRIDGE, Mass., May 2, 2018 /PRNewswire/ — Award-winning industrial robotics company Soft Robotics announced today that it has raised $20M in an oversubscribed funding round. The new investors include Scale Venture Partners, Calibrate Ventures, Honeywell Ventures, Tekfen Ventures, Yamaha Motor Co., Ltd., with Hyperplane Venture Capitalleading the round. Existing investors include Material Impact, ABB Technology Ventures, Taylor Farms Ventures and Haiyin Capital. Joining the Board of Directors will be Rory O’Driscoll from Scale Venture Partners and Kevin Dunlap from Calibrate Ventures.

Soft Robotics unlocks robotic automation for large, meaningful markets and labor starved industries such as food and beverage, advanced

Soft Robotics’ machines can grasp delicate items

manufacturing and e-commerce. Leveraging patented material science and AI algorithms, Soft Robotics designs and builds automation solutions and soft robotic gripping systems that can grasp and manipulate items with the same dexterity of the human hand. Since the company’s inception, its technology platform has experienced substantial customer validation and adoption, with over 80% year over year revenue growth and production installations running 24/7 for Fortune 500 companies and Dow 30 components, including Just Born Quality Confections (maker of Peeps).

“We’re proud of the team’s work to date to scale up the Soft Robotics’ technology platform and gain significant commercial traction across our customer verticals, said Soft Robotics CEO Carl Vause. “We’ve been able to address some of our customers’ largest supply chain and automation challenges, from picking and packing fresh produce and raw proteins, to bin picking and retail order fulfillment.”

ABB, a leader in robotics and industrial automation, sees the investment in Soft Robotics as part of ABB’s overall strategy to shape the future of industrial digitalization and the automated warehouse.

“We saw early on that the Soft Robotics solution is a paradigm shift in the way our machines interact with their environment, especially in their ability to grasp deformable, delicate, binned or otherwise complex items,” said Grant Allen, Head of Ventures at ABB Group. “As a leader in industrial manipulation with over 300,000 robots deployed, ABB sees a huge number of amplifying automation solutions but the intuitive control software Soft Robotics has created combined with their agile gripper is a linchpin of the automated warehouse.  In an era of increasingly high mix, low volume production cycles coupled with the need for pain-free automation configurability, we are also extremely excited about the direction Soft Robotics is taking their core technology with SuperPick, allowing ABB arms to do more with less training, greater accuracy and increasing autonomy.”

Soft RoboticsThis funding round comes at a pivotal time in Soft Robotics’ growth. Having proven the economic benefit and scalability of the technology, the company is today at a critical moment of accelerating its commercial penetration plans and new product roadmap.

“As investors we aim to match innovative technologies with major, unmet market needs,” said Rory O’Driscoll, Partner at Scale Venture Partners. “The $40B industrial automation market is large and growing, but largely limited to industries like automotive and semiconductor. Existing rigid robotic technology just doesn’t work for industries such as food and beverage or e-commerce, because of the variability of the product and the unstructured nature of the environment. With so many industries facing mounting pressure to automate, we aren’t surprised that there has been such rapid adoption of Soft Robotics’ technology.”

For more information about Soft Robotics, please visit www.softroboticsinc.com.

About Soft Robotics

Soft Robotics designs and builds soft robotic automation systems that can grasp and manipulate items of varying size, shape and weight. Spun out of the Whitesides Group at Harvard University, Soft Robotics is the only company to be commercializing this groundbreaking and proprietary technology platform. Today, the company is a global enterprise solving previously off-limits automation challenges for customers in food & beverage, advanced manufacturing and e-commerce. Soft Robotics’ engineers are building an ecosystem of robots, control systems, data and machine learning to enable the workplace of the future.

Contact:
Elyse Winer
Company Representative
Phone: (617) 645-5183
ewiner@softroboticsinc.com
www.softroboticsinc.com

Additional News Stories

Cambridge-based Soft Robotics to hire, move HQ following $20M raise

Soft Robotics raises $20 million to expand operations

 

Filed Under: General Tagged With: News, Raising Capital

ESG Investing

October 29, 2020 by Megan Esposito Leave a Comment

The Rise of the Single Company ESG Rating

The Good. The Bad. And Where We (Might) Go From Here

There is no longer any doubt that ESG investing is a major force with estimates now exceeding $20 trillion.  The days of negative screening, excluding “sin stocks” or oil and gas companies, are long past. ESG Integration is now a major focus of Wall Street and with it real progress and some warranted skepticism.

“The Remarkable Rise of ESG” a short piece by George Kell, Forbes, July 11, 2018, does an excellent job of walking through the early days of SRI and how far we have come. More recently “How Socially Responsible Investing Lost It’s Soul” by Rachel Evans, Bloomberg BusinessWeek, December 18, 2018, suggests a wake up call, warning that Wall Street is now, as is predictable, churning out ESG product that will disappoint the likely naïve but well intentioned.  Taking just one aspect of where we are today, the single company ESG rating, this can be used to check our current position on the evolution of ESG investing and help us to project where we are likely headed from here.

As an active participant in risk and quantitative investment analytics the rise of ESG and SRI factors, research and investing has thus far been a captivating journey. With the single company rating it is hard not to be drawn into reflecting back on the headline use of VaR (value at risk) as “the best single measure of risk” (before 2008 that is).  While practitioners knew a single risk measure was not a full answer to any question there was not a lot of effort made to broadly educate and communicate on the known limitations. Vendors pushed their system’s ability to produce a VaR measure, increasing emphasis on a single number as a panacea for a very complex reality. To be fair, with ESG ratings we are not looking at a huge underestimation of potential losses but I think there are some helpful parallels.

There has been a lot written on “the inconsistency” of ESG ratings and how the approach taken by vendor supplied ESG analysis can vary and just how wide the results can be between ratings agencies. CRSHub did a study in 2018 where correlation between company level ESG ratings between two leading vendors was only 0.32 (pretty low vs. 0.90 in their example for Credit Ratings).  These statistics will not surprise practitioners but as in the VaR example this did surprise the majority of investors who had less knowledge/exposure (prior to 2008/9).

Keeping it simple let’s start with positives and potential negatives about a single ESG rating.

The Good

A single score drives more widespread access to ESG analysis, investment decisions for many (retail investors/ wealth management), and revenue growth for most direct participants.  The rising use of the single company ESG score and its use in portfolio or index scores and index creation is telling.  The two largest ESG ratings agencies, MSCI ESG and Sustainalytics are leading and benefiting.  In summary what’s driving the focus on single company ratings comes down to first, “follow the money” but also the fact that – it is the practical first choice today for over 80% of users.

  • Allows more investments and investment decisions to be powered, or partially powered by ESG ratings. Supports creating and marketing products that can be successful with broad audiences.
  • A top-level score is a great first step in a screening process, to bring in names or weed some out. Similarly for monitoring changes. This provides a much improved and sophisticated approach rather than for example screening out by industry (Oil and Gas, Tobacco as an examples).
  • People want easy answers, not lots of data and questions. Looking at individual factors ratings within say the Governance category might just lead to confusion. People struggle when sifting through too much data. So even if a company level ESG rating may be inconsistent with that from another “credible source”, or important underlying factors might be showing specific high risk, the need for an answer wins.
  • Pick your poison – This allows for balance of where companies are doing well and avoids penalizing too much for maybe what hits headlines or could be present in specific underlying ratings or factors.
  • It reduces even bigger inconsistencies potentially in the underlying discrete measures/ factors. The rolled up rating will reduce that noise. Smoothing out the bumps that may annoy or distract people is not a bad thing.
  • Mutes out, at least to a degree, specific known unresolved biases. There are well-documented issues that show problems with ratings related to size, geography, and industry.
  • It gets people using and paying for research/ ratings in general (because they will only use at this level). Creating more revenue for the ratings industry will increase the quality and consistency of the underlying analysis over time. More people looking at top line data drives usage down in the detail by the heavy analytical users.

The Bad

Too much focus on the single rating could lead companies to solely manage to that number/rating. A single rating could hide important information. Instead of bringing more focus to critical issues, the merged score could potentially turn the spotlight off.  If the top-level score ends up being all-important then that is where the focus will be, and taking pressure off specific issues that are impactful (within individual E, S & G topics/ areas).

  • External pressure on companies to address specific shortcomings could actually be reduced. Emphasis on a single topline number/ rating could reduce pressure on companies who are rated low in specific areas – except in the most extreme cases. This gives them the ability to say – “But overall we are doing well, we have to look at the full picture, which we do and …”.
  • Internal resource and financial commitments to address specific shortcomings could be reduced if just the overall rating is what gets attention. The details become less important. Manage to the top-line number.
  • If all incentives are connected to a top-line rating then all actions will be as well. Incentive examples, inclusion in an index, a portfolio, how a company is compared to another for factor/ quantitative inclusion/selection or just an individual comparing two stocks…
    • Investment Managers who had been conducting their own research have often found that their funds don’t score as well as they would expect when scored by ratings firms. AUM could flow away and direct research conducted in-house (away from ratings firms) could be reduced.
    • Investment managers and ESG branded firms that rely on single external ratings could see the lion’s share of AUM growth.
  • Further consolidation and reduction of firms doing ESG research. Specialized “best of breed” ratings firms that only focus on specific issues such as for carbon impacts (within E) would need to partner or be acquired to be a part of producing a single rating. With the importance and value of their research reduced, the overall quality/depth of ESG research available in the market may diminish.
  • Reduces pressure on Ratings firms to increase the quality of their individual factor ratings. Single score can be disconnected, backward looking but more easily momentum building (self fulfilling outperformance).
  • There has been criticism in the credit world of conflicts of interest between the issuer and rating agency. The focus on the single rating could increase the potential of this also leading to conflicts in ESG.
  • Could increase breadth over depth of coverage, presenting a disincentive for providers to increase the depth of research (analysis within categories) and just focus on covering more names.
  • Delays the replacement of overly subjective methodologies not maturing into more structured objective transparent approaches. With less scrutiny on the underlying methodology, the improvement of individual underlying factor scores will be slower.

Looking Ahead

We can expect that the single rating will persist. It’s easy, handy and approachable. It is no doubt a vast improvement over negative screening for example based solely on industry. If as investors and information consumers we are interested but do not want to have to get into the detail, for now this could be just right. Maybe we will see more conversation about the use of single scores for the E, the S, and the G.  Some will argue that the Governance rating should always be on its own and that Social and Environmental have more standing as a combo.

Increasing interest in investment decisions and allocations to ESG Investments will allow for more options and choices, both around what analysis and ratings are produced and what investment opportunities are made available.  The analytics and the investment opportunities don’t have to be totally in sync but it’s best when the mutual support is there and when the two have separation without conflicts.  The rise of the single rating is strategically working for the largest ratings firms, with asset managers creating and marketing new products (ESG boutique firms), and with wealth management and the brokerage industry needing to keep it simple.

The fact that we are seeing criticism (the BusinessWeek article noted above as an example) is a plus.  We can demand and expect continued evolution in how ESG ratings are produced and leveraged.  The current scale and expected growth and inclusion of ESG factors and ratings in investment decision making will push through the current shortcomings that the overuse of the single ESG rating may present.   The investment approaches and ESG products produced and sold today will doubtless be replaced by more sophisticated offerings that are backed up by higher quality data and longer histories as the ratings evolution continues.


Filed Under: General Tagged With: Account Based Marketing and Sales, News

Andersen Alumni TechCXO

October 25, 2020 by Megan Esposito

The Andersen Alumni Association recently featured TechCXO and its co-founders, Kent Elmer and Mike Casey The article includes the backstory of the founding of TechCXO, including its first days at TechCFO, how the spirit of Andersen lives on within the firm, the success TechCXO is enjoying today.  The full story follows.  You can also read the story on the Andersen Alumni website or download a PDF.

Entrepreneurial Spirit: TechCXO, Pioneers in the On-Demand Economy

Six in 10 Americans recently told a Harris Poll that professional control of where, when, why, how and with whom one works is the new version of the “American Dream.”

But back in the early 2000s, in the aftermath of the internet bubble, Andersen alumni Mike Casey and Kent Elmer weren’t thinking about creating dreams; they were thinking about making a living.

From the Dot Bomb Rubble

Casey, who worked with Andersen Enterprise Group from 1985-1991 was winding down iXL, one of Atlanta’s most high-profile dot-bombs, as its CFO. Elmer had been with Andersen Enterprise Group from 1990-1993 and had just moved back from California after joining Broadcom’s M&A team through the acquisition of the early-state company of which he was the CFO. They both had successful stints as CFOs but re-entering public accounting or joining another public company held limited appeal. They both enjoyed the buzz and promise of early-stage companies.

“I was delivering outsourced fractional and project CFO and accounting services to a number of early stage and established technology companies as I looked for another full-time assignment.   Mike’s company, Mapics, was one of my clients, “ said Kent Elmer. “The more we talked, the more I realized that Mike already had a vision for the business model that I was executing – he even had the named already picked out. He convinced me that this could be more than just an interim gig while I looked for my next job – it was my job and career!”

TechCFO is Born

TechCFO was born. The premise was to present high potential companies with proven CFOs and support in an interim or fractional model. A few years after taking the plunge, the fledgling firm added more Andersen alumni, including Casey and Rick Lynch.

Those early TechCFO partners traded on their professional reputations to secure clients. Early on, clients warmed more slowly to the model, and then became fans as partners delivered service that exceeded expectations. An ecosystem of VCs, attorneys, bankers and even regional accounting firms was starting to build. The informal collection would network and refer to one another promising early-stage companies who needed guidance. The model was taking hold.

The Spirit of Andersen Lives On

Expansion followed into Boston and then Raleigh-Durham. Clients then began asking for other services, including sales, marketing and technology. The firm brought in sales executive Rick Nichols, who had ties with Andersen, launching the SOAR global account strategy and planning initiative. Nichols was drawn to the spirit and quality of the firm, which felt Andersen-like in many ways.

The company rebranded as TechCXO in 2012, and added a complement of interim and fractional COOs, CTOs, CROs, CSO and CMOs to its ranks.

Today, it is highly likely that a successful startup in Atlanta or the Southeast has the fingerprints of a TechCXO partner somewhere in their corporate profile. The Boston office has become a mainstay within the biotech and medical device startup communities, and the New York, Nashville and Midwest offices are growing quickly. TechCXO has roughly 85 partners and another 50 staff.

The firm recently celebrated its 15th year in business and has been named a 10-time Honoree of INC’s Fastest Growing Private Companies in America. The firm estimates it has assisted more than 1,000 clients and assisted on more than $5B of transactions, including M&A and capital raises.

Kent Elmer says the appeal is straightforward.

“We’re lean and flat. Because we rely on our partners’ networks to generate business, partners retain 80- 90%-plus of what they bill (see the TechCXO Prospective Partner Guide. They get to choose the clients they work with, and there’s a very strong entrepreneurial vibe in the firm, even though we’re a collection of mostly 50-plus-year-olds,” Elmer said. “We’re a casual and collegial group, too. Lots of cross-marketing takes place, and we really put our shoulder behind new partners.”

The No (Jerks) Rule

Internally, a well-worn proclamation is Rule #1: The No (Jerks) Rule. The plan for the future is simple: more partners in more markets. The firm says it’s generating more than $25 million annually.

“Every quarterly meeting, we show the same growth metrics. We didn’t start this thing to be a gig economy pioneer – it just kind of evolved into that. We’re getting to the point now where we need some more processes and infrastructure, but the basics are the same: partners are the product,” Elmer said. “Companies are getting an executive or team with no learning curve who can impact their business positively very quickly and for a fraction of the cost of a full-time department.”

Right for Andersen Alumni?

And would TechCXO appeal to Andersen alumni?

“Absolutely,” says Mike Casey. “If you’re a buyer, you’ll recognize the quality and rigor. If you’ve got some gray hair, have a strong entrepreneurial strain in your DNA, and enjoy business development, while being connected to great peers, TechCXO is a great later-stage career choice.”

Filed Under: General Tagged With: News

Wurk Secures $11 Million in Funding to Facilitate Further Expansion and Support the Growing Cannabis Workforce

October 24, 2020 by Megan Esposito

Leading cannabis Human Capital Management company plans to utilize this capital to bring in-demand technology and services to the market while investing in customer experience

Wurk, the first and leading Human Capital Management company for the cannabis industry, is pleased to announce the raise of $11 million in a funding round led by returning investors Poseidon Asset Management and Arcadian Fund. Existing investors Altitude, Salveo Capital, Phyto Partners and The Arcview Group also participated in the round.

Wurk plans to utilize the capital to enhance the client experience while expanding its cannabis HCM platform, including the launch of managed services. This will provide its growing customer base with dedicated human resource, payroll and tax experts. The company will also implement a robust analytics engine to provide highly sought-after data for the cannabis industry, allowing employers to increase operating efficiencies by benchmarking themselves against industry best practices.

“Our technology ecosystem allows cannabis companies to recruit, retain and optimize the efficiency of their rapidly growing workforces,” said Keegan Peterson, Founder and CEO of Wurk. “Multiple new states came online in 2018, and with a number of markets planning to implement a regulated cannabis program this year, the industry needs these critical business applications in place to support it at scale.”

“After participating in Wurk’s previous two funding rounds, we are thrilled to have the opportunity to invest in the company yet again,” said Emily Paxhia, Managing Partner at Poseidon Asset Management. “As investors focused on the cannabis space, we regularly see the HR, accounting, and tax challenges that startups in the industry face on a frequent basis. Wurk’s solution helps ease that massive compliance burden and creates a huge investment opportunity in doing so.”

TechCXO Managing Partner Rick Nichols is supporting Wurk as COO and Board Member.

Wurk helps cannabis companies manage payroll, human resources, timekeeping, scheduling and tax compliance, and minimizes compliance risks in the ever-changing cannabis regulatory environment. The company uses its expertise and trusted partnerships to provide guidance on 280E tax law, accounting and banking. Its platform is designed to scale nationally with the growth of the industry, while incorporating the local laws and regulations unique to individual states.

About Wurk

Wurk exists to help underserved businesses fortify, comply, and thrive in the face of uncertain regulatory environments. Designed specifically for the cannabis industry, our platform and managed services, allows employers to protect and streamline their operations, while providing an environment where people are a priority every step of the way. The intuitive solution automates the most complicated and risk-prone processes associated with Human Resources. For more information visit enjoywurk.com.

SOURCE Wurk

Related Links

http://enjoywurk.com

Filed Under: General Tagged With: News, Raising Capital

Female Founded Startups

October 24, 2020 by Megan Esposito

TechCXO continued its leadership in assisting female founded startups

TechCXO is dedicated to supporting female founded startups as they set a foundation for success by building best practices and infrastructure; access capital, customers and ecosystems; and accelerate revenue, product and market expansion.  Startups do this through a variety of TechCXO services, including Finance & Operations support from our CFOs; Sales & Marketing support from CSOs and CMOs; and Product & Technology support from CTOs and CIOs.

According to Crunchbase News, 2018 set at an all-time high for investment dollars into female-founded tech companies. In 2018, $38.9 billion was invested in companies with a female founder, representing 17 percent of venture dollars funded globally. Investments in 2018 came close to doubling the amount recorded in 2017, a year that saw $19.8 billion invested into companies with at least one female founder.

The following is a partial list of female founded startups we’ve assisted, the industry and cities in which they operate, who the TechCXO partners are who have, or are, supporting them and any additional notes on the companies’ success.

Filed Under: General Tagged With: News

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