Chris Selland, Partner, Executive Operations, Interim & Fractional CEO, CSO, TechCXO
Chris Selland sat down with Invest: to discuss Boston’s burgeoning growth in the technology sector, as well as to explain the ways in which his company continues to evolve in order to locate and provide their clients with excellent C-Suite executives.
What have been some of the key milestones for TechCXO over the last 12 months?
The company has continued to grow and succeed. The market has been challenging since the beginning of 2023, but we have been able to continue to grow and bring on new partners. We have expanded our footprint in Boston and have obtained new clients while cultivating our fractional executive model.
What is your current outlook for the staffing and technology industries in Boston?
Though the first half of 2023 brought challenges, these industries are starting to improve. We prioritize technology, and the tech-based banks struggled in the wake of the Silicon Valley Bank failure. The general market for venture capital slowed down, and interest rates drove PE investment down. Now, venture is recovering, banks are recovering, interest rates are declining and private equity is becoming more active. We are observing an uptick in new investment, as well as with general activity like mergers and acquisitions. The market is recovering and improving, and we are optimistic about this new direction.
What recruitment strategies are employed by TechCXO to find the best executive talent?
For our model, all of our partners are former C-level executives. We focus on fractional and interim executive services. The vetting of our partners is vigorous, and we are extremely selective in the type of people we bring in. TechCXO is focused on the higher end of the market and the most senior level of executives. Our differentiation involves providing all C-Suite functions – CEOs, CFOs, CROs tech, finance, growth, general management, product and human resources. Our partners handle the business development, and it is a relationship-based selling process accomplished through referrals. We operate mainly through our reputation and relationships.
Which types of projects and assignments drive the most growth for your company?
We are historically best known for financial services, fractional interim CFOs, which historically drive the majority of our growth. We have since broadened to encompass ALL C-Suite functions, though there certainly remains a broad, growing market for fractional CFOs.
Different types of investors have different perspectives on whether they prefer long or short-term fractional positions, and these choices are affected by market changes, as well as the size and vision of the company. We operate from early stage venture-backed companies, through the lower-middle market, which involves more private equity.
Are there any specific sub-industries also fostering growth?
We have many partners in the health and life science industries. Software, payments and fintech are also extremely active. Our CSO team is working extensively in security, and all of these industries are significant parts of our continued growth.
How does TechCXO differentiate itself from its competition?
The seniority and vetting of our partners makes all the difference. Our extensive vetting process is unique, and not all of our competitors vet as deeply as we do. We also have breadth on our side, as many other companies only focus on certain functions like CFOs or marketing. Our commitment to diversifying sets us apart. We are a good fit if there is a need at the senior level in the C-Suite and if they are looking for multiple roles to be filled. For instance, I am often called in as a fractional CEO or president, but many times I also wind up running sales or marketing on at least an interim basis, especially when the focus is on improving the growth trajectory.
What kinds of opportunities for growth are currently being explored by TechCXO?
One of the areas we are intently focused on building out is due diligence, because we expect and are starting to see a pickup in M&A. Due to our structure, we can do the technical, financial and business due diligence, so we can put together cross-disciplinary offerings for businesses – and investors – on a full scale. Due diligence is an area picking up as interest rates start to fall, and deal activity picks up.
What are the primary challenges faced by the staffing industry today?
Differentiation determines competition. There is a lot of interest and noise surrounding fractional services, so we have to determine how to best differentiate between competitors. Mindset can also be challenging. In the venture community there is still work to be done to accept the fractional model of compensation. At the same time, companies do not necessarily need as much venture capital to get up and running these days. Private equity has more rapidly adapted to new staffing models.
AI is driving a lot of top-line interest today. There is a fear that AI may be the next bubble, and there are certainly many struggling AI startups at the moment. Having said that, when compared to the “.com bubble,” multiple generational businesses were built during that time, like Amazon and Google. In other words, yes there will be losers but the winners will win very big. This also drives M&A activity, and AI will likely continue to drive growth in the market.
What are TechCXO’s goals moving forward into the next two to three years?
We aim to continue to grow and expand in a managed way with a focus on quality over quantity, and we believe that applies to our top and bottom lines, because we are structured as a partnership. TechCXO is not necessarily trying to be the biggest firm, recruit the most partners or win the most deals. We would rather obtain the right kind of business that is a good fit for what we do, while maintaining our high growth, high quality and solid margins, and most importantly strong, long-lasting and successful clients.
