Startup finance is the financial area of a startup. Startup finances involve the management of the capital raised by a startup, which typically comes from venture capitalists, angel investors, and friends and family. The primary focus of startup finance is to ensure that the company has enough cash to sustain itself until it becomes profitable.
In order to break into this field, it’s important to have experience in accounting and financial analysis. Most startup finance jobs require a degree in business administration or accounting, although some companies will hire candidates with a degree in a related field such as economics. Familiarity with financial software, such as Microsoft Excel and QuickBooks, is also a must.
A career in startup finance involves working with early-stage companies to help them obtain the capital they need to grow their businesses. Responsibilities may include conducting financial evaluations, preparing loan applications, and negotiating funding agreements. Startup financiers must be able to understand complex financial data and have excellent analytical skills. They must also be able to work effectively with people from a variety of backgrounds, including entrepreneurs, investors, and bankers.
The best startup finance jobs are in private equity, venture capital, and investment banking. Private equity firms invest in startups and venture capitalists provide funding to young companies. Investment bankers help startups raise money by floating bonds or issuing stock.
To get one of these jobs, you need a strong background in finance and experience working with startups. You also need to be able to network with people in the startup community. Events like Startup Grind are a good place to start.