New PropTech CFO: ‘The Capital Stack Is Everything’

The age of the one-size-fits-all balance sheet-crunching CFO is quickly becoming a relic of business history.

The chief financial officer today is like the quarterback of a business — only instead of throwing touchdowns, they’re tossing financial strategies, dodging economic hits and leading the team to victory. Here’s the kicker (and it might sound obvious) but depending on the industry and business mission, the CFO’s playbook — and career path — can look wildly different.

This shift is particularly evident in industries like PropTech and FinTech, where the evolution of both the business landscape and the back office has led to a greater recognition of different CFO archetypes.

“The traditional CFO was often a CPA with a focus on accounting and financial planning. Today, the role is much broader, encompassing strategy, capital markets and even elements of product and technology,” Tom Egan, recently appointed CFO at Hometap, told PYMNTS during a discussion for the series “A Day in the Life of a CFO.”

“Not every CFO is a fit for every company,’ he added. “Hometap operates in a very capital-intensive business, which means the role of a CFO here is vastly different from what you might see in a SaaS-based or hardware-driven company. In this context, the CFO role is heavily driven by capital markets, corporate development and long-term strategy.”

After all, in the HEI (home equity investment) business, the capital stack is everything. The CFO needs to determine the optimal blend of equity funding, debt financing and retained earnings to ensure the business can continue to scale while managing investor returns. Since mature firms are no longer in the “burn cash for growth” phase, CFOs like Egan need to attract institutional investors and securitize portfolios of HEI products.

Capital Markets Expertise Meets Operational Agility

Egan’s past experience in investment banking and his tenure as CFO of another PropTech company prepared him for the unique challenges of Hometap.

“My background allows me to navigate complex deal structuring, manage investor relationships and align financial strategies with operational realities,” he said.

This skill set is particularly relevant given the current fundraising environment, where access to capital is becoming more selective. “We’re in a market where there are a lot of interesting companies with valuable products that haven’t scaled or won’t scale due to market dynamics,” Egan noted. “This opens up opportunities for corporate development, including potential M&A, as well as building out new products internally.”

Such opportunities require a CFO who can think beyond spreadsheets and balance sheets. “A CFO today has to be both a strategist and a builder. You need to understand the operations, the product and the customer experience, and then translate those insights into financial strategies that attract investors and scale the business,” Egan said.

“Treasury software, for example, now allows us to reconcile cash across dozens — if not close to a hundred — bank accounts in hours instead of days,” he said. “This functionality is massive for a capital-intensive business like ours.”

Automation and analytics also play a pivotal role in underwriting and asset management. “We’re now able to deliver fully underwritten investments to investors much faster, combining human expertise with rigorous data analysis,” Egan explained. “This not only speeds up origination but also builds credibility with investors and the broader market.”

Evolving Archetypes in the CFO Role

Egan is also excited about the potential of artificial intelligence in financial planning and scenario modeling. “Imagine being able to run dozens of ‘what if’ scenarios instantly to plan for best-case, worst-case, and everything in between. We’re not there yet, but it’s on the horizon, and it will be enormously valuable for companies like ours,” he said.

As Hometap grows, Egan is focused on building a finance team that evolves with the company’s needs.

“Early-stage companies need generalists — people who can do a little bit of everything,” he said. “But as the business matures, you start to need specialists, whether it’s someone focused on reporting to capital partners or someone managing complex financial models.”

He also emphasized the importance of aligning the company’s capital strategy with its mission. “It’s not enough to secure a credit facility; it has to work for the business and the customer,” Egan said. “That requires strong relationships across the C-suite and a deep understanding of every aspect of the business, from product development to sales to marketing.”

For him, the future of Hometap — and the CFO role — lie in balancing innovation with operational excellence. “You have to look around the corner and down the road while still executing on today’s priorities,” Egan said. “That’s the challenge, but it’s also what makes the role so rewarding.”