Top tips for a CFO navigating a global period of instability
When a CFO of a private equity (PE) or venture capital (VC)-backed tech company plans for a global crisis, they need to focus on several strategic and financial aspects to navigate through potential challenges. A global crisis can be unpredictable, but preparation can help mitigate risks and position the company to emerge stronger.
Here are some key actions a CFO might take to plan for a global crisis:
1. Cash Flow Management
Focus on liquidity: Ensure that the company has enough cash reserves to weather a crisis. PE firms were actively telling their investments to pull all lines of credit at the onset of Covid even if the cash was not required.
Monitor cash burn: In a crisis, especially in tech companies that may not be profitable yet, it's crucial to control burn rates and ensure that spending is aligned with immediate priorities. Preference share coupons compound and roll up at 10-12% so this debt can be difficult to continually cover.
Implement cash flow forecasting: Regularly update cash flow projections, taking into account worst-case scenarios and potential disruptions to revenue streams. Many Tech businesses will have negotiated favourable loan terms during Covid, and these may be about to fall off a cliff edge.
2. Stakeholder Communication
Communicate with investors: Clear and transparent communication with PE/VC investors is essential. The CFO should provide regular updates on cash flow, the impact of the crisis on the business, and any required actions (such as fundraising or cost-cutting). Often getting ahead of the problem is advisable – don’t forget the PE/VC firms have large sums of money at stake and it is in their interests to work with you to find a solution.
Employee communication: The CFO, working with HR, should ensure that employees are kept informed, particularly around job security, compensation, and changes to business operations. Effective communication can help maintain morale and trust during uncertain times.
3. Risk Mitigation and Contingency Plans
Diversify revenue streams: Relying on a single revenue source can be dangerous in a crisis. The CFO should evaluate the diversification of the company’s income streams and prioritise business lines that are more resilient to economic downturns. Sometimes, it can lead to a decision whereby a low margin revenue stream could be given up focusing on a more profitable area of the business.
Supply chain resilience: For a tech company, disruptions in supply chains (especially for hardware or key tech infrastructure) can be critical. CFOs need to work with procurement teams to identify alternatives and backup suppliers.
Cost-cutting measures: Pre-identify areas where costs can be quickly reduced without undermining the core business, such as discretionary spending, overhead costs, and non-essential projects.
4. Market Analysis is key when building a business plan
Industry Trends and Crisis Impact: Discuss how the industry may be impacted by a global crisis (e.g., economic downturn, supply chain disruptions, changing customer behaviours) and how the company’s specific market can remain competitive.
Competitive Landscape: Assess key competitors and their likely responses to a crisis. This allows the company to identify where it stands in comparison and pinpoint areas for strategic advantage.
Customer Segmentation: Understand how crisis conditions might affect different customer segments and identify which segments are more resilient or likely to have evolving needs.
In a crisis, agility is key. The CFO must stay closely connected to the leadership team, investors, and other stakeholders to navigate financial pressures, adjust strategy quickly, and secure the future of the business. Having solid financial models, clear communication, and risk mitigation strategies can make a significant difference in weathering a global crisis successfully.
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Sabina Ciofu is Associate Director – International, running the International Policy and Trade Programme at techUK.
Based in Brussels, she leads our EU policy and engagement. She is also our lead on international trade policy, with a focus on digital trade chapter in FTAs, regulatory cooperation as well as broader engagement with the G7, G20, WTO and OECD.
As a transatlanticist at heart, Sabina is a GMF Marshall Memorial fellow and issue-lead on the EU-US Trade and Technology Council, within DigitalEurope.
Previously, she worked as Policy Advisor to a Member of the European Parliament for almost a decade, where she specialised in tech regulation, international trade and EU-US relations.
Sabina loves building communities and bringing people together. She is the founder of the Gentlewomen’s Club and co-organiser of the Young Professionals in Digital Policy. Previously, as a member of the World Economic Forum’s Global Shapers Community, she led several youth civic engagement and gender equality projects.
She sits on the Advisory Board of the University College London European Institute, Café Transatlantique, a network of women in transatlantic technology policy and The Nine, Brussels’ first members-only club designed for women.
Sabina holds an MA in War Studies from King’s College London and a BA in Classics from the University of Cambridge.
Policy Manager for International Policy and Trade, techUK
Daniel Clarke
Policy Manager for International Policy and Trade, techUK
Dan joined techUK as a Policy Manager for International Policy and Trade in March 2023.
Before techUK, Dan worked for data and consulting company GlobalData as an analyst of tech and geopolitics. He has also worked in public affairs, political polling, and has written freelance for the New Statesman and Investment Monitor.
Dan has a degree in MSc International Public Policy from University College London, and a BA Geography degree from the University of Sussex.
Outside of work, Dan is a big fan of football, cooking, going to see live music, and reading about international affairs.
Theo joined techUK in 2024 as EU Policy Manager. Based in Brussels, he works on our EU policy and engagement.
Theo is an experienced policy adviser who has helped connect EU and non-EU decision makers.
Prior to techUK, Theo worked at the EU delegation to Australia, the Israeli trade mission to the EU, and the City of London Corporation’s Brussels office. In his role, Theo ensures that techUK members are well-informed about EU policy, its origins, and its implications, while also facilitating valuable input to Brussels-based decision-makers.
Theo holds and LLM in International and European law, and an MA in European Studies, both from the University of Amsterdam.
Lewis' programmes cover a range of policy areas within Market Access (international trade regulation, sanctions and export controls, technical standards and product compliance, supply chains) and Consumer Tech (media and broadcast policy, consumer electronics, and connected home technology).
Prior to joining techUK, Lewis worked in government affairs and policy roles for international trade associations in Southeast Asia including the American Malaysian Chamber of Commerce and the European Chamber of Commerce in Cambodia.
He holds an undergraduate degree in Social and Political Sciences from the University of Cambridge and an MSc in Public Policy & Management from SOAS University of London.
Tess joined techUK as an Policy and Public Affairs Team Assistant in November of 2024. In this role, she supports areas such as administration, member communications and media content.
Before joining the Team, she gained experience working as an Intern in both campaign support for MPs and Councilors during the 2024 Local and General Election, and working for the Casimir Pulaski Foundation on defence and international secuirty. She has worked for multiple charities, on issues such as the climate crisis, educational inequality and Violence Against Women and Girls (VAWG). In 2023, Tess obtained her Bachelors of Arts in Politics and International Relations from the University of Nottingham.
Ryan Day leads the technology sector team, having provided audit, accounting, taxation and strategic advice to a range of clients in this space for over 15 years. He is also a core member of the financial services sector team, due to the overlap with FCA regulations that impact his FinTech clients. Ryan’s experience and access enable him to add value, disseminate ideas and views, and ensure that his clients remain ahead of the curve.
Within the firm’s international services group, Ryan focuses on serving clients in North America. His client base includes subsidiaries of US-based groups starting out in the UK, scale-ups undergoing significant fundraising and multinational groups seeking expansion opportunities.
Ryan is highly regarded for his straight-talking, down-to-earth style. Some of his long-standing clients have been with him since he joined the firm as a school leaver in 2007, a testament to his approachable nature. His ability to simplify complex areas and communicate them effectively makes Ryan a trusted partner to everyone he works with.
