Finance as a Service (FaaS) is a term that refers to companies that offer outsourced, fully integrated business financial strategy, financial planning, and accounting service lines. FaaS companies benefit startups by providing a full range of financial services that are consolidated through a single provider – it’s like having multiple integrated teams that cost significantly less than hiring and managing your own financial departments. FaaS services include accounting, controllership, financial planning, business strategy, and tax filing and compliance.
Kruze’s Finance team goes beyond the typical “finance as a service” offering, helping founders build and manage budgets, prepare for board meetings, track cash burn and get a greater return on their cash position.
Our team is staffed by former investment bankers, venture capitalists, startup executives, and FP&A professionals. We have experience helping founders get ready for fundraises, compare venture debt term sheets, get great (and safe!) yield on their cash positions and more.
Some of our services include:
Reach out to us to see if any or all of our advisory offerings are right for your startup!
Finance as a Service firms operate differently from traditional accounting, bookkeeping or advisory companies. FaaS companies leverage new technologies and scalable systems to increase their agility and responsiveness, providing customized financial reporting and advisory services in real time. The services offered by FaaS firms include:
Kruze’s team goes beyond these controller type projects and acts as a true finance advisor to startups:
Drew Venker – Head of Finance
Drew Venker leads the finance practice at Kruze Consulting.
After spending 15 years at investment banks, the majority of that at Morgan Stanley, Drew embarked on a journey to partner with entrepreneurs on finance and strategy.
In 2020, Drew worked at an enterprise software startup, helping the founders to prepare for fundraising which laid the foundation for their successful IPO in 2021.
Leveraging a wealth of experience in fundraising and working with institutional investors, Drew helps leaders achieve greater success by developing their finance functions and providing and fundraising strategy and due diligence support so they can focus on scaling their businesses.
Drew graduated from the University of Colorado with a B.A. in Economics and holds the Chartered Financial Analyst (CFA) designation. He is also part of the Techstars family, volunteering as a mentor to fintech startups in the class of 2021.
Drew lives in the Bay Area and spends most of his free time with his wife and 3 young children. They enjoy traveling (internationally and within the US) and spending time outdoors.
Healy Jones – VP Financial Strategy
Healy Jones is the VP of Financial Strategy at Kruze.
Healy leverages his expertise to help Kruze clients understand their financing options and to optimize their financial metrics. Companies that Healy has worked with have raised over $1 billion in early-stage funding.
Healy is a startup founder, former VC and has been an executive at multiple VC-backed startups.
Healy is frequently quoted in technology publications such as TechCrunch, Crunchbase, Inc. and Protocol on trends in startup finance.
He was an investor with Atlas Venture’s technology venture capital group, and started his VC career with Summit Partners. He started a bootstrapped company that he successfully exited, and was an exec at Sunrun prior to and after its IPO.
He has an undergraduate degree from Dartmouth College, and an MBA from Wharton. Healy has invested in over 60 startups, with a number of successful exits and multiple unicorns.
He lives in the SF area and spends his free time running around after his two kids.
Finance as a Service has grown as technology has influenced the role of finance and accounting within businesses. Prior to FaaS, the business accounting function was a limited role, typically focused on bookkeeping and tax preparation. Companies like Intuit used software like Intuit’s QuickBooks to refine and streamline the general ledger – the basic accounting record that contains all of a company’s financial information.
With the advent of cloud computing, accounting software companies have been able to extend their reach deeper into the startup and small business market. QuickBooks Online allowed startups to take advantage of Intuit’s accounting system without a largel investment, and is still the dominant system used by small- to medium-sized businesses.
This in turn led to a surge in software systems for peripheral accounting functions like forecasting, invoicing and billing, payroll, and expense management, providing startup companies and their accounting teams with a broad array of tools to manage day-to-day activities and provide real-time dashboards and information for decision makers. These strong products integrate with each other and with banking solutions, and can be combined into fintech stacks that give startups the same kind of information, insights, and efficiencies that larger companies have, including:
Even small and mid-sized businesses need key financial insights and information, and it’s even more important that those services are accurate, reliable, and timely. But smaller organizations can’t always afford to establish those capabilities internally, and often don’t have the resources to recruit and build financial teams. FaaS providers offer startups the full-scale service of an entire in-house financial team at a much lower cost, and with much less effort. The FaaS model effectively serves:
Kruze Consulting can help you strategically outsource your financial and accounting needs, providing you with experienced financial experts who can support your startup as it grows. We already have the infrastructure and financial proficiency to quickly onboard your company and help provide your startup with financial reporting, strategy, and critical metrics that you need to focus on your core business. For more information, contact us today.
Kruze Consulting’s clients have raised billions in venture capital financing, and now that interest rates are up, founders can earn meaningful yield on that cash. Our finance as a service team specializes in providing tailored treasury and cash management advice to startups, particularly those backed by venture capital. With significant capital at their disposal, these startups need expert guidance to ensure their funds are managed effectively. We understand that unlike large corporations, startups may not have the resources or personnel for sophisticated treasury operations. That’s where we come in. Our experienced team offers insights on preserving capital, maintaining liquidity, managing risks, and optimizing yields within acceptable risk levels. We assist startups in reviewing their investment policy statements and provide recommendations on investment options that align with their financial needs and risk appetite. Whether it’s navigating the complexities of bond ladders, evaluating money market funds, or ensuring compliance with fiduciary responsibilities, Kruze Consulting is here to support startups in making informed and strategic treasury decisions.
Bookkeeping has evolved to more effectively serve clients, and one of the biggest changes has been the growth of remote bookkeeping, part of Finance as a Service (FaaS). Taking advantage of remote bookkeeping services allows your startup to access top-notch financial professionals at a much lower cost. In addition, these seasoned professionals are experienced with current technology including accounting and banking applications.Your startup will also benefit from the structure and project management that an outsourced FaaS firm can provide to your company.
Startups that are fundraising often need a CFO, and one way to cost effectively get CFO services is through a Finance as a Service (FaaS) firm. Hiring a fractional CFO through a FaaS company gives your firm the expertise it needs to prepare financial projections, document KPIs, draft financial statements and reports, and many of the other tasks that venture capital relationships require.
Kruze frequently writes about important trends and topics on startup finance and financial services.
Startup Financial Planning
Posted on Fri, 1 September 2023
Kruze Consulting's COO, Scott Orn, provides a 9 step guide to creating a financial plan for your startup, given the current financial climate.
Finance as a Service (FaaS) firms rely on the efficiency, cost-effectiveness, and scalability of cloud-financial technology to serve their clients. Early-stage companies have very different fintech needs than other small businesses, since startups can grow quickly, so your accounting software should accommodate that growth. Your system should also be an industry standard that allows any experienced accountant or CPA to use it to provide you with the financial data you need to effectively run your business. In general, the best accounting system for startups is QuickBooks Online, which scales easily, integrates with most other financial systems, and provides excellent financial reporting.
A CPA Firm Specialized in Startup Accounting & Finance
Startups are our niche, and our passion. Our clients have raised over $12 billion in VC funding. We are one of only a few outsourced accounting firms that specialize in funded early-stage companies - we only offer financial and tax services to fast growing startups in the Pre-Seed, Seed, Series A, Series B and Series C stages.
The Right Accounting Partner for Your Startup’s Next Round
We know how to de-risk your startup’s next venture capital round. Our team makes sure you are ready to fly through your next VC’s accounting, HR and tax due diligence. And when you use us as your bookkeeper, we set up and keep up-to-date a due diligence folder so you can get that next round of fundraising.
A Leader in Cloud Accounting Software
Our practice is built on best of breed cloud accounting software like QuickBooks, Netsuite, Gusto, Rippling, Taxbit, Avalara, Brex, Ramp and Deel. Technology makes us more efficient, saving our clients money and letting us offer higher value services like FP&A modeling, 409A valuation, and treasury advice. Startups deserve to work with CPAs using modern software.
Trusted by Top Venture Investors
Top angel investors and VCs refer Kruze because they trust us to give the right advice. Our clients are portfolio companies of top technology and Silicon Valley investors, including Y-Combinator, Kleiner, Sequoia, Khsola, Launch, Techstars and more. With us, your books and taxes are in order when it’s time to raise another round of venture financing.
What types of startups does Kruze Consulting usually work with?
Kruze Consulting works with funded Delaware C-Corps. Our clients have secured Pre-Seed to Series C or Series D funding. We look to partner with our clients, going beyond the typical outsourced accounting relationship and seeking to provide a higher level advisory role. We feel honored to be a part of making the world a better place, even if it’s one debit and credit at a time.
Accounting, Finance, Taxes, & Payroll all in one solution
Startup CFO services, startup accounting and bookkeeping services, startup annual taxes, expense reports, payroll, state sales taxes: we've got you covered. Our software provides custom tailored dashboards that can be provided weekly or monthly, depending on your preference and plan. Founders are often so busy building their company that they don’t have time to take care of their finances. Traditionally, these companies have had to work with a basket of people to get their work done, including bookkeepers, accountants, AP clerks, CFOs, consultants, and tax accountants. At Kruze Consulting, our founders have one point person, saving time and money.
We're huge fans of Vanessa and the folks at Kruze Consulting. They set up our books, finances, and other operations, and are constantly organized and on top of things. As a startup, you have to focus on your product and customers, and Kruze takes care of everything else (which is a massive sigh of relief). I highly highly highly recommend working with Vanessa and her team.
Co-Founder @ Superhuman
Prior to Kruze, as a remote-first team, we were weighed down by a lot of the bureaucracy involved with having a distributed workforce. Kruze has supported us above and beyond basic accounting needs by ensuring we have everything we need to expand and support our team wherever they may be located
Pequity's Head of Operations & Legal
Avochato has been growing rapidly in the past year – in fact, too quickly for us to keep up with books, taxes, and budgeting for growth. Partnering with Kruze Consulting has been fantastic to manage, track, and analyze our finances while we continue focusing on building our customer base. Kruze’s team knows what startups need.
Alex De Simone
CEO @ Avochato
Everybody, go to Kruze Consulting. They do a great job. I personally can tell you, they've done a great job for our companies, including Calm.com. I'm sure they’ll do a great job for you.