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How Should Seed Startups Think About Cash Runway?

Running out of cash is the #1 reason startups fail, accounting for 38% of all failures. (CB Insights)

That’s why having a handle on cash runway is so crucial.

Here are 3 common cash flow mistakes to avoid courtesy of Sifted, a resource for startups founded by the Financial Times’ innovation editor John Thornhill:

1️⃣ Relying too much on manual spreadsheets. 👉 Make sure you have a structure in place so the information you’re relying on is up-to-date.

2️⃣ Only looking at actual spending. 👉 This month’s spending may not match next month’s. Accurate forecasts are crucial.

3️⃣ Not planning for a crisis. 👉 Always keep in mind the worst-case scenario, and prepare for it.

If you’re interested in learning how to run a cash runway analysis, the HCP runway analysis template below can help. ⬇️

What do you think of this template? Please share in the comments below. 🗯️

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