A common perception when it comes to the roles and responsibilities of a CFO is that they’re primarily focused on financial control and reporting. However, with the right tools and strategies, they can drive growth beyond balance sheets. The question is, how can they do that? How can they make bold moves to enable that growth?
I spoke with just the right person to answer these questions, Chad Gold. Chad is the CFO at G2, one of the largest and most trusted software marketplaces.
Chad joined G2 in November 2023 as the company’s first-ever CFO. He brings over 20 years of experience in corporate finance, with a significant track record in both pre- and post-IPO technology companies.
Before joining G2, Chad was the CFO at Salesloft, where he played a pivotal role in the company's dramatic growth. During his tenure, Salesloft's valuation soared from $200 million to $2.3 billion. His accomplishments earned him the title of CFO of the Year by the Atlanta Business Chronicle in 2022.
Read on for insights from our engaging discussion. If you prefer to watch the webinar, click this link for the full recording.
Key takeaways
- Investor mindset and priorities are now shifting from purely growth to scalable and profitable growth with an increased focus on a company's unique value proposition.
- The importance of the CFO has increased as businesses need to demonstrate a clear path to profitability alongside growth, making this financial leadership position critical in driving sustainable success.
- Interdepartmental relationships are important—finance plays a key role in driving cross-functional collaboration by helping other departments understand the financial implications of their actions and supporting their success.
- Finance and spend management tools help create scalable processes and support cross-functional collaboration.
- eSignatures and contract management systems have a transformative impact on scaling businesses.
- Irrespective of market conditions, companies must maintain rigorous financial processes and focus on profitability and growth.
- Establishing trust and partnership with finance leaders is crucial for marketing leaders to secure investments and drive business success.
Q1: You joined G2 a year ago. How has this year been for you in terms of product, customers, and growth? What specific technologies or processes have you focused on?
Chad Gold: G2 is the third company where I've had the opportunity to join as the first CFO. This year has been focused on building the foundation for scalable growth.
G2 operates in a challenging space. Everyone knows that sales and marketing technology is crowded, and budgets are being scrutinized closely. Despite these challenges, we've continued to grow, which is great. One of the key disciplines my team and I have brought to G2 is the ability to grow while being free cash flow positive. In the technology space, this is becoming increasingly unique, balancing profitability with growth.
This year has been about getting the right people in place and implementing the right technology. For instance, we've introduced systems to streamline processes, and ensure we have the infrastructure to make informed business decisions.
We've implemented various tools to enhance efficiency and visibility. While I know we can discuss specific tools like Signeasy later, our primary focus has been on establishing robust systems that streamline our operations and provide clear insights for decision making.
Overall, the past year has been about setting up this infrastructure to ensure we can continue growing sustainably and profitably. I'm excited about the progress we've made and look forward to building on this foundation in 2025.
Q2: What are you excited about and looking forward to in 2025?
Chad Gold: I'd say a couple of things. First, with much of the foundational work behind us, our focus will shift to how we invest to continue growing the business. The macro environment is beginning to show signs of improvement. About 80% of our business is in the US, and with the recent election providing some certainty and interest rates starting to come down, the business climate is becoming more favorable.
I'm excited to see how our business performs in this improving environment and what it means for our customers. G2's success is inherently tied to the success of our customers, so seeing them thrive in a better economic landscape is something I'm really looking forward to.
There's also a lot of potential in the market right now. I read recently that around 250 IPOs are currently on hold, waiting for the US market to stabilize. Many experts predict that 2025 could be a banner year for public markets. If this holds true, it could be significantly beneficial for G2 as well.
Q3: With marketing becoming increasingly challenging and customer acquisition costs rising, G2 is uniquely positioned. How does G2 help marketers in SaaS companies cut customer acquisition costs?
Chad Gold: At the end of the day, as a marketer, you're under pressure from people like me who are pushing hard on budgets and challenging you to achieve more with less money. Solutions like G2 allow you to lower your customer acquisition costs by meeting buyers where they are.
That's been one of the key things resonating with the market over the past few years.
Technologies that enable you to target your buyers where they are, are invaluable, especially in an environment with fewer salespeople and tighter budgets. G2's platform makes a ton of sense in this context.
Q4: How has the fundraising scenario changed from the time you were in Salesloft to now? What advice would you give to people trying to raise funds now?
Chad Gold: If I think back to raising funds at SalesLoft, we raised about $170 million. The environment back then was almost entirely focused on growth. The conversations were all about how fast you could grow, what your total addressable market was, and what the competitive landscape looked like. These factors are still very important, as growth remains the primary value driver for technology companies.
The main difference now is that investors are also very interested in your underlying economics.
It's not just about growth anymore, but about how you drive scalable growth. Investors today want to know that your business model is sustainable and that their investment will fuel an already efficient engine, not help you figure out the basics.
In the past, the emphasis was overwhelmingly on growth, sometimes to an unsustainable degree. I remember showing a slide to my team that illustrated how investor focus shifted dramatically towards growth over profitability at the peak of the markets. At one point, growth was being valued almost nine times more than profitability, which was unrealistic and unsustainable.
The reality is that businesses have to be profitable. The shift we've seen in the past few years is a recalibration towards a more balanced approach. Companies now need to demonstrate that they can grow and have a clear, achievable path to profitability.
This change is why there has been so much emphasis on the role of the CFO lately. While the tasks we handle aren't new, there's now greater recognition of their importance. Companies need to show they can achieve balanced growth and have a viable route to profitability.
So, my advice to those raising funds today is to focus on both growth and the economic fundamentals of your business. Show investors that you have a scalable and profitable model, and you'll be in a much stronger position.
Q5: We are bootstrapped and have always prioritized doing right by our customers and employees, never at the cost of growth. Would you say that bootstrapped companies are having a moment now?
Chad Gold: As you mentioned the word “bootstrapped,” I can't express enough how much I admire what it takes to build a company without raising capital. It's a significant point to bring up.
Companies, founders, and teams need to be very intentional about raising money. There was a time when the headline of raising funds and the subsequent valuation was a major milestone to showcase a company's momentum.
While that's true, it's important to remember that a fundraising round and its associated valuation are not ultimate outcomes; they are milestones along the journey.
There are trade-offs when raising capital. You get new board members, additional accountability, and the benefits of great investors who can help grow your business. However, I deeply respect bootstrapped companies because they make many of these critical decisions from the beginning, without external financial support.
Bootstrapping forces companies to be efficient and focused, often leading to a stronger foundation. It's not just about having the funds but about making thoughtful, sustainable choices that benefit the company, customers, and employees in the long run.
Q6: In many companies, finance, marketing, sales, operations, and product departments often work in silos. What do you think is the importance of interdepartmental relationships, especially as a finance leader?
Chad Gold: There's no one-size-fits-all answer. What I would say is that it all comes back to a couple of key phrases I live by. One is "assume positive intent." At the end of the day, you want to believe that every department and every leader has the same goals that you do. We're all trying to drive growth and make the business successful. Starting with that as the foundation of your relationships helps a lot.
Another key phrase I subscribe to is, "I want to work with problem solvers, not problem spotters." This includes finance. I view finance as the foundation for driving cross-functional collaboration. It's not about stopping people from doing things; it's about helping them understand the pros and cons of their actions and making them successful.
Your point is valid and aligns with what I said: the company's performance is my performance, and they are my team's numbers.
We're in it with the business, trying to figure out how to achieve our goals together. This fosters an environment of collaboration. Especially in companies like Signeasy, which is bootstrapped, this approach is crucial. You have to collaborate constantly and address problems as they arise.
Someone once asked me about the transition in my career from working at large companies like Home Depot and SAP to smaller, high-growth companies. They wanted to know what excites me about working in these smaller companies. For me, it's the emotional investment. When the highs are high, they're really high—everyone is energized and excited. Conversely, when challenges arise, everyone feels them deeply.
In smaller companies, just like in your role, you can see the direct impact of your work. One of the reasons I enjoy these roles is that I can look back after a week, a month, or a year and see the tangible impact of my efforts.
Q7: What are your thoughts on finance leaders looking at marketing as cost centers?
Chad Gold: Marketing, especially brand investments, can be a challenging conversation because the near-term ROI is difficult to see.
Over my career, I’ve found that benchmarks are key. I look at things like marketing spend as a percentage of new and expansion bookings, targets, and gross sales efficiency. If I can get comfortable with those overall metrics, I can set growth targets for the business.
Yes, I’ll challenge the marketing team, but I realize that investing in marketing is crucial for driving the business.
When building financial targets, it’s like a Rubik’s cube. You want growth, profitability, and specific metrics, and as you adjust one thing, another might fall out. For example, if you want to grow bookings quickly but don’t invest in marketing, you’ll find that you didn’t generate enough inbound leads. It’s about having good conversations about benchmarks and aligning with your finance leader on where you want to be over a 3 to 5-year period and how to get there together.
I believe marketing leaders don’t spend money just to spend it; they do it because it’s important for the company. Aligning those expectations and having open discussions is crucial. Our Chief Marketing Officer, Sydney Sloan, once told me, “If you ask me to give back money, I’ll do it. But if you don’t ask me, I’ll spend exactly what my budget is. I view it as my responsibility to spend my budget.” She also said, “I’m a steward of the company’s money, and I’ll do whatever I need to make us successful.” This instilled a lot of trust in me.
During our time together at Salesloft, there were periods during COVID when we had to cut costs, and times post-COVID when the business was doing great. We rebranded with a new logo and made significant investments because Sydney had built that trust. My advice to marketing leaders is to build that partnership and trust with your finance leader. Yes, they’ll ask difficult questions, but their goal is to make the company successful, just like yours. They’ll be there to help you achieve that.
Q8: G2 is home for a variety of tools and technologies. What are some of your favorite finance tools that other finance teams could benefit from?
Chad Gold: There are many tools in every category, but some core ones are essential for any finance team.
Firstly, you need an accounting system, often referred to as the ERP (Enterprise Resource Planning). At G2, we use Intacct, and I've also worked with NetSuite, both of which are very good.
Another important tool is a planning solution. Managing budgets and spreadsheets manually is inefficient, and there are amazing tools available now. For instance, Adaptive Insights, Pigment, Cube, and Anaplan are great options. The choice depends on your company's life cycle and specific needs.
If I were to highlight one more essential tool, it would be those in the spend management category. Managing travel and expenses efficiently is important. While big enterprise players like Ariba have been around for a long time, there are innovative newcomers like Navan that are transforming how we think about these tools. Additionally, tools that streamline the purchasing process, such as Zip, are incredibly valuable.
The goal is to move processes from being managed over emails and phone calls to being integrated into a system. Financial processes are often very cross-functional, involving the legal team, security, and the business owner. Implementing technology that facilitates collaboration within a system rather than through disparate communication tools can significantly enhance efficiency and success.
Technology that streamlines these processes and facilitates collaboration over a system instead of email or Slack can make you much more successful. Interestingly, most people think that implementing processes and controls leads to resistance. However, I've found that people crave process, transparency, and clear communication. If you provide a well-defined process, they will follow it.
All the tools I've mentioned are about creating scalable processes. The finance team plays a crucial role in providing the foundation for the business to grow. Without investing in the right tools and processes, it's challenging for the company to scale effectively. Even if the company is growing, without proper financial infrastructure, the finance team may struggle to support and drive the company's growth effectively.
Q9: How does something like contract management fit into the picture when it comes to streamlining tech? What was it like before eSignatures or contract management systems came into place compared to what we have today?
Chad Gold: To answer your second question first, it's incredible to think back to the days of paper processes. Contracts would get emailed and signed, and then someone would have to find a scanner to send it over mail.
If you think about it, almost every fast-growing technology company could not have scaled without tools to streamline the signature process. eSignatures and contract management systems have been game changers in this regard.
Contract management becomes very important as a company grows, especially for establishing processes. A contract management solution frames the contracting process for the sales organization. Sellers can easily see what they need to do within a system, follow the steps, and ensure compliance.
Contract management solutions also ensure that the contracts being signed are the ones you want. This control is vital for maintaining consistency and compliance across the organization. It eliminates the chaos of disparate contract terms and reduces the risk of unauthorized agreements.
One of the most exciting developments in contract management is the integration of artificial intelligence. These systems house an incredible amount of data about your terms with both customers and vendors. An advanced contract management system can extract and analyze this data efficiently.
Imagine logging into your system, prompting it, and asking, "What percentage of my customers don't pay me annually?" Instead of a lengthy analysis involving spreadsheets, the system provides instant data. This capability transforms how finance teams manage contract information.
Q10: What are some bold moves or standout choices in your career that felt scary at the time but eventually paid off?
Chad Gold: For me, one standout moment was early in my career when I spent eight years at Home Depot in various finance roles. It was an amazing place to grow and develop as a finance leader. There was a time when I thought I might stay there for 20 or 30 years. However, finance has a cyclical nature—closing financial books, forecasting, and repeating the process. Retail, like Home Depot, is also very cyclical. After eight years, I found myself less excited about the business and its direction.
Taking a significant pivot, I moved into the software industry. People often ask how that transition happened. I subscribe to the phrase, "invest in lines, not dots." This means establishing relationships and investing in them over time, rather than just having one-off interactions. This approach applies to personal networks and relationships with investors. For instance, meeting investors when you're not raising money builds a relationship and credibility over time.
The way I transitioned into software was through a person I had worked with at EY, my first job. We stayed in touch, and 10 years later, he hired me at Ariba, part of SAP. He told me, "You know financial planning and analysis very well. We need that muscle. I'll teach you software." That pivot was a bold move, but 10 years later, it's been an exciting journey in technology.
As a CFO, you have to be willing to take risks. Investing in new markets is always risky. You need to set agreed-upon targets with your business, gather data to support your decisions, and create checkpoints to assess progress. Some investments have paid off, while others didn't work out, requiring a pullback. Having aligned business goals is crucial for success.
Another bold move is engaging in mergers and acquisitions (M&A). I've been fortunate to work on about 30 acquisitions across multiple companies. M&A can amplify growth if done well but can also be a drag on the business if not. It's essential to do the necessary work to determine if an acquisition is right for your business. The CFO should be heavily involved and lead from the front in such strategic decisions.
Q11: What are your thoughts on when market conditions might stabilize, and how soon companies might find it easier to secure funding again? Given the current downturn, scalability feels like a distant goal. What signs or shifts should we be watching for to indicate a turnaround?
Chad Gold: There are two ways to think about this. First, market conditions vary globally. For instance, the venture market in the US slowed down before the venture market in India. India felt the impact about a year later, but it seems to be rebounding faster than the US.
Globally, we're seeing some positive signs. Interest rates are beginning to come down, which is significant. In basic finance terms, every company is valued on discounted cash flows. When interest rates rise, company valuations tend to fall. It's a straightforward but crucial relationship: higher rates mean lower valuations. So, as rates decrease, we should see some stabilization in valuations.
Additionally, having the US election behind us brings a level of certainty to the market, which helps. Regardless of the political outcome, certainty is always better for market conditions. There are also views that the incoming administration will take steps to make business easier, which should positively impact the market.
A common mistake companies make is to take a step back and decide to weather the storm, waiting for conditions to improve. However, I believe that many changes from the past few years are here to stay. The rigor in financial processes, the CFO's involvement in purchasing decisions, and tight budgets are likely to persist even as markets improve.
While it will become easier to raise money, investors will push harder on how businesses plan to be profitable while growing. This is a challenging trade-off. Many software companies struggle to achieve profitability, and it requires having precise telemetry on your business. Early alignment on key metrics is important for scaling.
So, while markets will get better, the emphasis on financial discipline and profitability will likely remain. It's about adapting to these conditions and not just waiting for a return to previous norms.
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