Biotech Startup Lyra Therapeutics Brings On First Full-Time CFO Amid Funding Push
The Wall Street Journal article, “Biotech Startup Lyra Therapeutics Brings On First Full-Time CFO Amid Funding Push," quoted Russell Reynolds Associates Consultant Jenna Fisher on her observations of startup CFO trends. The article is excerpted below.
Lyra Therapeutics Inc., coming off a growth year following an infusion of venture capital, recently hired its first full-time, in-house finance chief—a sign of maturity as the company’s lead medical treatment inches closer to commercialization.
Watertown, Mass.-based Lyra appointed R. Don Elsey as finance chief to help lead the biotechnology company as it goes through rounds of clinical trials for a chronic sinusitis treatment it is developing.
The move to hire a permanent finance chief follows a period during which Lyra employed a string of part-time, contracted finance executives, some outsourced from finance support and CFO services firm Danforth Advisors LLC.
Young, private companies frequently turn to rent-a-CFOs for technical expertise, executive recruiters say. Companies generally outgrow interim and part-time CFOs when revenue exceeds $40 million or, if not yet public, they have a two-year horizon for an initial public offering, said Jenna Fisher, global head of the CFO practice at executive recruiting firm Russell Reynolds Associates.
Hiring a full-time CFO can be a signal of stability and perhaps a sign that a company is ready to take on a new chapter.
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