Treasury management should be a top priority for startup founders

Liquidity is yours the company’s lifeline. With it, you have a fighting chance of realizing your vision, but when you’re out of money, you’re headed for failure.

It’s no secret that the startup funding environment isn’t what it was a year ago. As interest rates have risen, debt has become more expensive, and the bar for securing it has only gotten higher. According to CB Insights’ latest State of Venture Capital report, total venture capital funding fell 34% in the third quarter of 2022 compared to the previous quarter.

The fundraising environment isn’t getting any easier, and this adds to the pressure on startup founders and teams to make the most of their current cash reserves. Treasury management is one way to do this.

Whether you need to expand the runway you’ve secured so far or you’ve just closed an expansion, here are some reasons why treasury management should be at the top of your list of priorities as a founder, and what you can do do it today to get started with it if you haven’t already.

Your office space isn’t the only thing that affects your runway

Your cash reserves mean nothing if you can’t access them in time to pay your current expenses.

Inflation makes everything more expensive, which means your current cash reserves won’t stretch as far as they would have a few years ago.

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