So he hit on the idea of MyCFO, an advisory firm for the wealthy. It seems like Jim Clark and his friends can still use the help. Repeat investors Jim Barksdale and Kleiner Perkins chipped in, joined by first-timer Amerindo Investment Advisers. Executives point to the company's business model by way of defense. MyCFO uses technology to eliminate costly, time-consuming functions such as accumulating brokerage statements and producing balance sheets, says COO Frank Tirelli.
Revenues come from fees charged to customers, and the client base has grown by word of mouth.
Staffed with 360 employees, MyCFO expects to turn a profit in the fourth quarter of this year. At first glance, MyCFO's funding coup may seem like a traditional case of who you know. But investors say they need a lot more than famous names to be convinced of a company's potential. Amerindo's chief investment officer, Matthew Fitzmaurice, notes that MyCFO has an income statement and balance sheet that demonstrates it can execute against its strategy. Other VCs agree that in the current market, a sizable chunk of funding is a vote of confidence in a company's future.