Fractional CFO for AI software companies
AI software looks like SaaS on the surface and behaves nothing like it underneath. Inference and training spend land inside COGS, gross margin moves with usage rather than seats, and capitalisation policy for model development is a live argument with auditors. Prepaid credits and hybrid pricing add revenue recognition complexity that seat-based SaaS finance teams have never had to address.
The first job is the unit economics. We rebuild gross margin customer-by-customer, separate compute commitments from on-demand spend, and reconstruct cohort behaviour from pilot through production so the board can see what scaling actually costs. Pricing and renewal forecasts become defensible once that layer exists.
Flow provides financial modelling, FP&A and fractional CFO advisory to AI software companies across horizontal copilots, vertical AI applications, agent platforms, foundation model wrappers and AI-native SaaS.
KPIs to track for "AI software" startups
We're very 'KPI-driven' fractional CFOs, and we make sure to monitor the right metrics for your startup.
ARR
Net revenue retention
Gross margin after compute
Inference cost per query
Compute spend as % of revenue
Tokens consumed per active user
Pilot-to-production conversion
Logo retention
CAC payback
Magic number
Cohort gross margin
Active seats / users
Financial modelling for "AI software" startups
As fractional CFOs, we build KPI-driven financial models that are insightful and easy to maintain.
Financial modelling is both art and science - models must be robust, but also understandable, and useful for both internal planning and VC fundraising purposes. Hire a fractional CFO who knows how to handle both sides of the equation.
Compute-adjusted gross margin
Customer-level gross margin built from inference tokens, training runs and reserved compute commitments separated from on-demand spend. Shows which accounts subsidise others once GPU cost is fully loaded into COGS.
Pilot-to-production cohort model
Conversion, time-to-production and expansion behaviour tracked from first pilot through enterprise rollout by cohort. Separates the signal of pilots that scale from the noise of pilots that stall in procurement.
Hybrid pricing revenue waterfall
ASC 606 recognition across seat fees, prepaid credits, usage overage and outcome-based components, reconciled to bookings and deferred revenue. Surfaces how much reported ARR is genuinely recurring versus credit drawdown.
Capitalised model development
Engineering and compute spend on model training split between R&D expense and capitalisable development cost under a defensible policy. Pre-empts the auditor argument and stabilises the EBITDA line investors price off.
Inference unit economics
Tokens consumed per active user, cost per query and contribution margin per workload modelled against pricing tiers and model selection. Tells the product team which features pay for themselves and which need a price change.
NDR and logo retention cohorts
Net dollar retention, gross retention and seat expansion measured by cohort with usage-driven expansion separated from contracted price uplift. Distinguishes durable expansion from one-off bursts of model adoption.
Founders and investors we've worked with
We've supported winning builders across AI software and beyond.
Brew
As a fractional CFO we performed a confidential valuation of Brew, a Tel Aviv-based generative AI software platform for marketing teams, supporting Elevator Fund's portfolio management.
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Testim
As a fractional CFO we performed a confidential valuation of Testim, a Tel Aviv-based AI-based software testing automation platform, supporting Elevator Fund's portfolio management.
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TBô
We acted as fractional CFO to TBô, a Zurich-based tech-enabled DTC male underwear brand, building a bottom-up financial / operating model with cohort-level KPIs and positioning the company for its next venture round.
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Onlogist
We acted as fractional CFO to Onlogist, a Hamburg-based online marketplace for last-mile vehicle transfer, providing confidential valuation guidance and operating model support.
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Marcura
We acted as fractional CFO to Dubai-based Marcura, owner of maritime payroll and B2B payments platform MarTrust, advising on the strategic e-Wallet vendor selection and supporting product/finance integration.
See moreRecent fractional CFO track record
See our fractional CFO and financial modelling experience across AI software and beyond.
Simple pricing
No hidden costs, no complicated long-term contracts. We understand how important flexibility is for AI software startups.
Per month
- Accounting / FP&A tech stack implementation
- Monthly financial statements and reporting pack
- Quarterly board pack with detailed financial analysis (with variance analysis vs. budget, relevant KPI observations etc.)
- Investor-friendly output
Per month
- Everything in Core, plus
- Operating model (via an online platform like Runway or Excel-based)
- Ongoing model maintenance, refining projections, burn/runway management
- Customer cohorts modelling, churn and retention analysis
- LTV / CAC, unit economics analysis
- Cap table management
Per month
- Everything in Grow, plus
- M&A / fundraising support; review of business plan
- Pitch deck preparation
- Investor approach strategy / list building
- Due diligence support and deal negotiation
- Valuation as required and free access to Multiples Pro
Packages shown are illustrative, final pricing is tailored to client requirements.
Explore our fractional CFO offering for similar verticals
We're a specialized fractional CFO to AI & ML companies.
Our fractional CFO experience spans across all AI & ML verticals.
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We know tech inside & out.
We provide fractional CFO services to companies operating across the entire tech.
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We help you scale by providing fractional CFO advice, through fundraising and a successful M&A exit.
VC fundraising for AI software companies
We help you prepare materials, reach out to investors in our extensive network, negotiate fair term sheets and structure the VC round.
Learn moreM&A for AI software companies
We advise winning tech companies on M&A exits, and over the years successfully executed numerous transactions with both financial and strategic buyers.
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