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  • Writer's pictureAleksey Krylov

Why Fractional CFOs Popular In Biotech and MedTech?

Updated: Oct 25, 2023


Biotech or MedTech fractional CFO (Chief Financial Officer) refers to hiring a part-time CFO who works with a company on a flexible or as-needed basis rather than employing a full-time CFO. This arrangement offers several benefits for businesses, especially those that may not have the resources to employ a full-time CFO. This approach also helps avoid the company’s hidden costs of employing full-time CFOs. Here are some advantages of having a fractional CFO:

Fractional CFO Popular in Biotech and MedTech, Aleksey Krylov
Fractional CFO Popular in Biotech and MedTech

1. Cost savings:

Hiring a full-time CFO can be expensive, particularly for small and early-stage biotechnology or medical device companies. Fractional CFOs offer a cost-effective solution as they work part-time, allowing biotech or medtech startups to access high-level financial expertise without the burden of a full-time salary and benefits package.

2. Strategic financial guidance:

Fractional CFOs bring financial knowledge and strategic expertise to the table. They can help companies develop and execute financial strategies, make informed business decisions, and navigate complex financial challenges. Their experience and insights can contribute to long-term growth and profitability.

3. Scalability and flexibility:

Fractional CFOs can scale their involvement based on the needs of the business. During periods of high activity, such as fundraising or mergers and acquisitions, the CFO's scope of responsibility and time commitment can increase. Conversely, during quieter periods, the company can reduce the CFO's involvement. This flexibility allows businesses to align the CFO's role with their changing needs and avoid unnecessary expenses.

4. Access to specialized skills:

Fractional CFOs often have diverse industry experience and expertise across various financial functions. They can provide specialized skills and knowledge in areas such as strategic planning, investor relations, fundraising, financial planning and analysis (FP&A), budgeting, risk management, audit, financial reporting, IPO prep, business development, M&A or sale of the business. Companies can benefit from this expertise without having to hire multiple full-time employees or rely solely on the capabilities of internal staff.

5. Objective perspective:

An external fractional CFO can bring an impartial and unbiased perspective to the company's financial matters. They can assess the business's financial health objectively, identify areas for improvement, and provide unbiased recommendations. This objective viewpoint can lead to more effective decision-making and help overcome any internal biases or conflicts of interest.

6. Mentorship and knowledge transfer:

Fractional CFOs can also serve as advisors to C-level teams or the Board of Directors. They can also be mentors to existing finance teams, providing guidance and professional development opportunities. They can transfer their knowledge and expertise to internal staff, improving the financial acumen of the organization as a whole. This mentorship can contribute to building a stronger finance team and fostering professional growth within the company.

7. Focus on core competencies:

By outsourcing the CFO role to a fractional CFO, companies can free up internal resources and allow key executives to focus on their core competencies. This can lead to improved operational efficiency and productivity as the management team can dedicate their time and energy to strategic initiatives and growing the business while leaving financial matters in the hands of an experienced professional.


In summary, fractional and virtual CFOs offer numerous benefits to Biotech and MedTech businesses, including cost savings, strategic financial guidance, scalability, flexibility, access to specialized skills, an objective perspective, mentorship and knowledge transfer, and the ability to focus on core competencies. This arrangement allows companies to tap into high-level financial expertise without the commitment and expense of a full-time CFO, enabling them to make informed financial decisions, optimize their financial operations, and drive growth and profitability.

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