According to Leapfin CEO Raymond Lau, the company is running lean and keeping an eye on profitability.
In a call with TechCrunch, Leapfin’s Lau explained that many companies only have “one-in-thirty” visibility into their operations; that business owners only manage to fully collate their revenue and cost of revenue results monthly, meaning that the rest of the time they are flying at least partially blind.
Instead of raising lots to invest in blow-out sales and marketing expenses, Leapfin is running pretty lean.
TechCrunch asked Lau why he only raised $4.5 million in the new round, which, given the product progress his company has made, felt modest.
So Leapfin doesn’t need more money, and selling shares ahead of growth is an expensive way to raise capital.
What we need next from Leapfin is an ARR number so we can vet just how much product market fit it really has.