Chinaccelerator Batch 18 8X8: Lily Liu, Co-founder & CFO at Earn.com

Summary

The speaker shares their journey from being a Stanford pre-med student to becoming a CFO and entrepreneur. They highlight their transition from traditional roles in finance and consulting to building startups, including a hospital in China and a distressed tech company. Emphasizing the importance of pragmatic, analytical thinking, they discuss managing risk, resource allocation, and the strategic role of a CFO in startups. The talk underscores how foundational business principles apply to both large and small companies, and the unique challenges and opportunities faced in the startup environment.

Takeaways

• 🌅 The speaker is presenting at 4 AM in the Bay Area, showing their commitment to the event.
• 🌟 The speaker met Oscar in Shanghai and has maintained their connection over the years.
• 📊 The talk focuses on the speaker's journey from CFO to entrepreneur, sharing personal experiences and insights.
• 🎻 The speaker grew up in Piedmont, California, as a Chinese-American, following a traditional path with activities like playing violin and swimming.
• 📚 Initially pursuing a pre-med track at Stanford, the speaker shifted interests to political science and economics, leading to a master's in East Asian studies.
• 🌏 An internship with Morgan Stanley in Hong Kong and a job at McKinsey in New York led to various global experiences in business.
• 🏥 The speaker's first startup experience involved building a hospital in China, despite having no prior knowledge of hospital construction.
• 💼 The speaker's second startup experience was turning around a distressed company, 21 Inc, into a new company, Earn, which was later sold to Coinbase.
• 📈 The role of a CFO in a startup is more about managing risk and resources strategically, not just finances, often requiring a pragmatic, analytical approach.
• 🧠 The speaker emphasizes the importance of business fundamentals and common sense in startups, regardless of the specific industry or product.

Q & A

What was the speaker's initial career path and how did it change?

The speaker initially pursued a path towards becoming a doctor, studying pre-med in college at Stanford. However, they developed interests in political science and economics, leading them to a master's in East Asian studies. They eventually entered the business world, working at Morgan Stanley in Hong Kong, McKinsey in New York, and in private equity at KKR.

How did the speaker end up working in a startup-like environment in China?

In 2011, the speaker took a job in China to build a hospital, which was a challenging and character-forming experience. This was their first startup experience, even though it was not in the tech sector, and they were asked to be the CFO.

What was the speaker's role in the hospital project in China?

The speaker was the CFO of the hospital project. Despite not fully understanding what being a CFO entailed, they took on the role and learned to manage the financial aspects of the project.

What was the second startup the speaker was involved in and what were its challenges?

The second startup was a company called 21 Inc, which was heavily funded but in a distressed state. The company had a negative balance sheet and no functioning product or team. The speaker had to help restructure the company and eventually sold it to Coinface.

How does the speaker view the role of a CFO in a startup?

The speaker sees the CFO role in a startup as more than just managing money. It involves managing risk, strategic resource allocation, and taking a holistic approach to the business. The CFO needs to think pragmatically, solve business problems, and help the team make informed decisions about product development and team composition.

What are some of the core skills the speaker believes are important for a CFO in a startup?

The speaker believes that core skills for a CFO in a startup include thinking pragmatically, solving business problems analytically, and being able to apply common sense. They also need to be detail-oriented and have a quantitative approach to resource expenditure.

How does the speaker describe the difference between working in a large institution and a startup?

In large institutions, the speaker notes that things are more established and there is an existing business model. In startups, the focus is on finding product-market fit and being willing to do whatever it takes because the structure is not as established. Startups require a more flexible and adaptable approach.

What was the speaker's educational background before entering the business world?

The speaker was born and raised in Piedmont, California, and attended Stanford University. Initially on a pre-med track, they shifted their focus to political science and economics, and later pursued a master's in East Asian studies.

How did the speaker's early experiences in business influence their approach to startups?

The speaker's early experiences in business, particularly at large institutions like Morgan Stanley and McKinsey, provided them with professional training and a foundation in business principles. These principles, they found, were applicable in startups, albeit in a more flexible and adaptable manner.

What advice does the speaker have for those considering a career in startups?

The speaker advises that being a part of a startup requires a willingness to take on various roles and responsibilities, as well as the ability to think pragmatically and analytically. They emphasize the importance of understanding business drivers, being detail-oriented, and being able to test and innovate quickly.

How does the speaker view the role of a CFO in terms of revealing 'secrets' in the business?

The speaker views the CFO role as not just about managing finances but also about using data and analysis to reveal insights that can influence strategic decisions. This includes understanding market dynamics and bringing a perspective that can help in resource allocation.