This Week in Startups
Jason Calacanis covers startups, tech, markets, media, and all the hottest topics in business and technology. He also interviews the world’s greatest founders, operators, investors, and innovators.
Managing your treasury in 2023 | Startup Finance Basics w/ Kruze's Scott Orn | E1843
Kruze's Scott Orn joins Jason on the latest edition of Startup Finance Basics! In this episode, they discuss the current state of the market (0:40), diversifying bank relationships (6:09), managing risk (16:25), and much more!
Key Points
- Based on Kruze's data, the median cash at their average startup has been ticking up for the first time in about 9 months, indicating a potential market bottom as weaker companies have been culled and the stronger ones are getting funded and facing less competition.
- Startups should prioritize safety and liquidity when managing their cash, keeping 3 to 6 months of cash in their operating account and the rest in safe, easily accessible investments like money market funds or treasury bonds, with an investment plan ratified by the board.
- To manage risk and avoid a single point of failure, startups should diversify their funds across at least two banking institutions and consider using insured cash sweeps to spread deposits across multiple FDIC-insured banks for additional safety.
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Table of Contents
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| 0:40 | |
| 6:09 | |
| 16:25 |
Transcript
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