«The collaboration with Librio was a mutually inspiring and appreciative dance of push and pull.»
As «CFO on demand» at a storytelling company like Librio, Christian Nauer has some inspiring insights to share. Dear Christian, the stage is yours!
Can you describe your role as «CFO on demand» at Librio?
Encouraged by their Innosuisse coaches, Ed approached me to help drafting a solid financial model as the basis for a planned funding round. I supported the Librio team in the decision-making process by simulating the impact of the different fundraising scenarios on the cap table and on the implementation speed of the different chapters over time.
How did the Librio team react to you?
The team welcomed me with open arms. The “forest family”, as they call themselves, is an energetic and open-minded group of individuals who look after each other very well, be it by sharing homemade treats or offering coffee brewed with love and dedication. It was inspiring to meet a team that is not only proud of what they have achieved so far, but also very open to shaping the future of the company together.
What were your first steps?
We initiated a series of workshops to understand the team’s challenges thoroughly. Workshops proved invaluable in grasping Librio’s unique circumstances and needs. I prefer asking numerous questions, avoiding the advice trap.
What financial forecasting methods you used to develop the financial model for Librio?
With Librio’s customer relationship management tool, we were able to dig deep into the customer data. Segmenting customers into different cohorts, e.g. by the time of first purchase, provided valuable insights into the behavior of these customers over time. We modeled the expected behavior of the cohorts based on key assumptions and hypotheses, which we compared to the track record of these customers’ actual purchases over time.
How did you ensure that the financial model is in line with Librio’s long-term strategic goals?
The development of a financial model is a very iterative process, as each model can be adapted to the respective growth targets. Therefore, after each iteration of the model, we discussed the resulting growth dynamics and each assumption in the team. The result is a generally understandable and accepted scaling recipe.
What specific milestones have you achieved for Librio during your mandate?
Inspired by the firm’s most important products – personalized books – we worked out the future story of Librio chapter by chapter, identifying core hires and investments into marketing and projects. In parallel, we worked out a fundraising strategy in line with the goals of the firm. With the strong and engaged community in mind, Librio went for a crowd funding campaign raising more than CHF 1 Mio.
Anything you would like to add?
Thank you Ed Russell and the Librio team for the warm welcome into your “forest family” and the great collaboration.