This Week in Startups

Managing your treasury in 2023 | Startup Finance Basics w/ Kruze's Scott Orn | E1843

Nov 8, 2023

18:30

Snipd AI

Finance expert Scott Orn joins Jason to discuss the current state of the market, diversifying bank relationships, and managing risk in startup finance. They highlight the importance of capital preservation, liquidity, and risk management, and explore various types of banks for startups, including boutique banks and neo banks. They emphasize the need for personalized service and share insights on managing a startup's treasury effectively.

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Quick takeaways

Startups with stronger fundamentals are seeing an increase in funding and cash balances, signaling a potentially brighter future for the startup ecosystem.

Having two banks for startup accounts, including an escape hatch bank, and utilizing insured cash sweeps can help manage risk and diversify the startup's treasury.

Deep dives

Startups seeing improvement in cash balances and burn rates

According to Scott, the median cash at a startup has been increasing in the past three months, suggesting a potential upturn in the startup ecosystem. Weaker companies that may not have deserved funding have been cold, allowing stronger companies to secure more funding and drive up their cash balances. This positive trend indicates a potentially brighter future for startups overall.

Managing Treasury and High Failure Rate in Startups

01:41

Introduction

2min

Startup Treasuries: Managing Money and Avoiding Failure

6min

Different Types of Banks for Startups

6min

Personalized service and diversity in banking options for startups

2min

Managing Your Treasury in a Startup: Capital Preservation, Liquidity, and Risk Management

2min

Todays show:

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!

Time stamps:

(0:00) Kruze's Scott Orn joins Jason

(0:40) The current state of the market

(6:09) The SVB lesson: Diversify your bank relationships

(16:25) Capital preservation, liquidity, and risk management

Check out Kruze: https://kruzeconsulting.com

Follow Scott:

https://twitter.com/scottorn

https://www.linkedin.com/in/scottorn

Read LAUNCH Fund 4 Deal Memo: https://www.launch.co/four

Apply for Funding: https://www.launch.co/apply

Buy ANGEL: https://www.angelthebook.com