In this episode, Brandon Valentine, a CPA and the founder of Valentine Advisory Group, explains why a founder who can't speak to their unit economics can't raise capital: lenders and investors want to understand how the company makes money and how they get their capital back. He breaks down what goes into the numbers (cost of goods sold, operating expenses and a price the market will pay), why pricing starts with market research and the problem you solve for the customer, and how a three statement financial model turns "I want money because my idea is very good" into a specific ask backed by numbers. Hunter adds why bad unit economics get worse with growth: lose money on one widget and you lose more on a thousand. They also cover finance tools versus finance expertise, how to vet a CPA, and how AI is changing accounting work, including why it still depends on good data going in. Founders preparing to raise will learn which numbers to get right before the pitch.
Chapters
00:00 Asking for capital with numbers, not belief
00:37 Introducing Brandon Valentine and Valentine Advisory Group
01:11 Where founders should start: unit economics
03:40 Why you can't raise without your unit economics
04:53 Labor, operating expenses and early foundations
06:55 Bad unit economics lose more as you scale
07:40 Pricing, freemium and market research
10:16 Pricing to the problem you solve
12:50 The three statement model and the capital ask
15:03 Finance tools versus finance expertise
16:33 How to find and vet a CPA
18:07 How AI is changing accounting and finance
23:02 Where AI goes wrong: bad data in, bad data out
24:23 Where to find Brandon
Host: R. Hunter Harris
https://www.linkedin.com/in/rhunterharris/
Guest: Brandon Valentine
Brandon is a CPA from Atlanta and the founder of Valentine Advisory Group. He helps people buy and sell businesses in the lower middle market and helps founders and small business owners build their accounting and finance foundations.
https://www.linkedin.com/in/brandon-valentine-cpa
https://valentineadvisorygroup.com/
By Hunter Software Consulting
https://huntersoftwareconsulting.com/