E Fundamentals – Series A Equity Round

When John Maltman, CEO of the E Fundamentals’ Group, first met Metric, his business and its underlying software product were in their infancy. The software was still being developed and the business was pre-revenue. The Company’s investor base consisted of a small group who had been with the Company since it was formed.

John recognised that, whilst he had already formed a very experienced Board of Directors, given the business’ growth plans, he needed financial advice to strengthen the team. John engaged Metric to undertake the role of part-time CFO as well as the services more traditionally associated with a chartered accountancy firm, such as bookkeeping, management accounts, payroll, as well as financial statements and tax return preparation.

As John explained, “It was a good day for our business when we found Metric. They have given us extraordinary support in many areas – everything from great bookkeeping to strategic advice.”

Over the years, as the business has grown and developed, it has faced new challenges which Metric has helped to address:

1. R&D tax credit claims. Metric was able to assist E Fundamentals make substantial R&D tax credit claims, allowing the business to recover a significant proportion of its software development cash outlay. This was particularly valuable to John: “Metric helped us manage from day one to make good use of R&D tax credits as we built our first service, so that we submitted promptly and accurately.”
2. Forecasting and modelling. The Board needed detailed P&L and cashflow budgets and forecasts in order understand the financial implications of its strategy and to be able to gain the confidence of potential investors.
3. Assisting investors. It’s important to be able to satisfactorily meet the needs of investors, whether that be to drill down into specific areas of concern or to help them to utilise tax incentive schemes such as SEIS, EIS and VCT.
4. Grants. Metric supported the applications to different grant-providing bodies. Grants have proved to be a very attractive source of additional funding.
5. Group restructuring. As the business has grown and needs have developed, it was necessary for the business to undertake a hive down and transfer intellectual property within the newly formed group. Metric was heavily involved in this restructuring, working with lawyers to achieve an outcome that worked for the business and investors alike.
6. Part time CFO. Having a representative at the Board that is able to “own” the financials is very helpful at Board meetings, so that decisions may be reached based on facts, rather than assumptions. What’s more, we’ve been able to help John to start building an in-house finance function by interviewing and recommending the appointment of a Financial Controller when this became right for the business.

The Group now looks remarkably different to when Metric first met John. The headcount has increased tenfold, the Group is now working with household brands and the company has become a group with international plans and two offices.

When asked what advice he would share with companies that are, for example, two years behind E Fundamentals on the life cycle, John’s advice is simple: “Hire Metric”.