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    © 2024 SB Investment Advisers (UK) Limited
    Illustration of man balancing on chart line that is descending
    Data Analysis

    CFO Survey: How CFOs are navigating a changing market

    Our exclusive survey shines a spotlight on startups’ plans for riding out the downturn.

    Some economic indicators remain strong, such as the low 3.5% unemployment rate in the United States.

    The survey was fielded in May, some six months after the Nasdaq began its retreat, capturing CFOs’ outlook during a time of high volatility. As the economic backdrop continues to shift, their outlook could shift as well. If, for example, the pace of layoffs across the industry accelerates, concerns about hiring, retention, and labor costs could become far less pronounced. (You can explore the full survey results, and filter by region, sector, and stage, with our interactive data experience.)

    The survey highlights some compelling findings, as well as nuances and regional differences. What’s clear is that as CFOs look ahead to rocky financial times, they’re having to make tough calls, particularly around hiring, while continuing to hit financial targets. Five key insights from this survey will help point the way:

    Issues that companies said will have an impact on business in 2022

    54%
    Hiring/retention challenges
    54%
    Inflation
    45%
    The financing environment
    42%
    Market volatility
    31%
    Rising interest rates
    24%
    Supply chain disruptions
    18%
    The war in Ukraine
    18%
    COVID-19

    “Managing uncertainty is par for the course now. The current COVID-19 lockdown situation has caused a three-week delay in our operations, but we’ve been able to manage given our experience with the first set of lockdowns.”

    – China-based CFO

    How long CFOs expect inflation to last

    5
    0-6 months
    33
    6-12
    41
    12-18 months
    13
    18-24 months
    8
    24+ months

    Companies that expect talent costs will impact their business

    By region

    38
    Asia & Middle East
    69
    Europe
    21
    Latin America
    79
    US East Coast
    63
    US West Coast

    By stage

    54
    B & C rounds
    66
    D & E rounds
    37
    Public or later stage

    We hired a lot in the last six months and had to pay more than anticipated. For now, we’ve paused hiring other than for mission critical roles.

    – CFO of a European SaaS company

    Companies planning to increase cash compensation in 2022

    By region

    43
    Asia & Middle East
    63
    Europe
    29
    Latin America
    57
    US East Coast
    77
    US West Coast

    By stage

    63
    B & C rounds
    66
    D & E rounds
    47
    Public or later stage

    “We’ve been aggressive on hiring in the US, as when there’s fear and uncertainty in the market, it’s a good time to step on the gas. Strong candidates, especially on the sales side, are eager to join high-growth companies with opportunity.”

    – CFO of an India/US software company

    Companies that plan to scale back hiring plans

    38
    Asia & Middle East
    50
    Europe
    50
    Latin America
    14
    US East Coast
    57
    US West Coast

    Impact of market volatility on next fundraise

    47%
    No change
    14%
    Plan to raise more
    21%
    Plan to raise less
    24%
    Plan to lean more on debt

    Among the 1 in 5 companies that conduct sponsored liquidity events, here’s how often and how much of their equity companies allow employees to sell:

    Frequency

    14%
    As a one-time event
    19%
    At regular intervals
    71%
    Coinciding with fundraising rounds

    Amount

    5%
    No limit
    29%
    Up to 10%
    69%
    11%-25%
    5%
    Up to 50%

    Companies that expect to see a business impact from supply chain issues

    By sector

    23%
    Consumer
    36%
    Enterprise
    17%
    Fintech
    7%
    Health Tech

    By stage

    13%
    B & C rounds
    37%
    D & E rounds
    26%
    Public or later stage
    Next
    Sōzō Pulse

    CFOs weigh in on inflation, talent, volatility, and more

    Explore the full results of our May 2022 CFO survey with our interactive tool. Compare the results and benchmark your company.

    Portrait of LTK's Co-Founder and President, Amber Venz Box
    Feature

    Brand new: How a new identity became a unifying force for LTK

    A corporate rebrand can be hard and risky; this creator-guided commerce high-flier shows how to do it well.

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