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.
Table of Contents
0:00 | |
0:40 | |
6:09 | |
16:25 |
Transcript
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