Treasury management should be top of mind for startup founders
Liquidity is your company’s lifeline. With it, you have a fighting chance of achieving your vision, but when you’re out of money, you’re on the course to ruin.
It’s no secret that the startup funding environment isn’t what it was a year ago. As interest rates have climbed, debt has become more expensive, and the bar for securing it has only grown taller. According to CB Insights’ latest State of Venture report, total venture funding declined 34% in Q3 2022 compared to the previous quarter.
The fundraising environment isn’t getting easier, and that’s adding even more pressure on founders and startup teams to make the most of their current cash reserves. Treasury management is one way to do that.
Whether you need to extend the runway you’ve secured so far or just closed an extension, here are a few reasons treasury management should be at the top of your list of priorities as a founder and what you can do today to get started with it if you haven’t already.
Your office space isn’t the only thing impacting your runway
Your cash reserves mean nothing if you aren’t able to access them in time to pay for your ongoing expenses.
Inflation has made everything more expensive, meaning your current cash reserves won’t go as far as they would have a few years ago.
