This article has been updated in December 2023 to include the latest data
With nearly 50% of startups failing due to poor cash flow management, Payhawk releases a guide for CFOs and Founders, with input from venture capital investors QED Investors and Early Bird Digital East Investors. Plus international scaleups Heroes, VICIO, Rentals United, Hypoport SE, and Essentia Analytics.
The ebook covers what to prioritize when managing cash flow and how to leverage spend management solutions to control spending post-VC fundraising.
The ebook features input from international investment firms like QED Investors, and Early Bird Digital East Investors. And growing businesses including Heroes, VICIO, Rentals United, Hypoport SE, and Essentia Analytics
Payhawk, the fast-growing spend management platform which combines corporate cards, reimbursable expenses, and accounts payable in one solution, today announces its release of a money management handbook to help startups Founders and CFOs that have raised VC funding to manage their cash flow and build a business that lasts beyond the difficult first year.
The new ebook, "How to demonstrate robust cash flow control post VC funding: A guide for CFOs and Founders""covers two broad topics: what to prioritize when managing cash flow, and how to use spend management solutions to control spending post-VC fundraising. It’s aimed at startup Founders and CFOs who have raised VC funding and are looking to build longevity.
The COVID-19 pandemic has manifestly changed how companies handle their finances. Some businesses have seen a partial recovery to their revenue and growth, while others have been forced to reassess payment terms with suppliers and customers.
The economic downturn of recent months has also contributed to reduced sales and impacted cash flow for many, particularly new businesses. In this climate, CFOs and Founders will often seek investment to drive revenue growth whilst struggling to maintain sufficient cash flow, the cause of failure for nearly 50% of startups.
Even in a fluctuating market, it is crucial that startups sustain their operations; and for scaleups, to keep their investors happy. One key way to do this is with good cash flow management. Investors optimize for success by backing companies with a clearly defined path to revenue generation, profitability, and high margins. Once an investment is made, they expect to see good control of cash flow, gross profit, net burn, and runway.
Early stage companies are frequently early adopters of automation in tech, such as spend management software. Payhawk’s handbook offers concrete advice to Founders and CFOs that want to get the most out of their spend management software, to support day-to-day operations for their business and for their investors, to demonstrate good unit economics, strong cash flow control, and concrete actions for profitability.
Hristo Borisov, Payhawk CEO, and Co-founder, says, “We're pleased to launch our handbook, ‘How to demonstrate robust cash flow control post-VC funding: A guide for CFOs and Founders.’ We’ve collated research and insight from various VC firms and startups that give Founders and CFOs the inside scoop on spend management in both the early stages of their business and once they’ve secured VC funding. At Payhawk, we used these same tools to beat the statistics and become Bulgaria’s first unicorn, so we have confidence in our findings.”
Contributors to the handbook include VC firms, QED Investors and Early Bird Digital East Investors; investment analytics specialists, Essentia Analytics; and startups Heroes, VICIO, Rentals United and Hypoport SE. You can read the full ebook here.
The Payhawk Editorial Team consists seasoned finance professionals boasting years of experience in spend management, digital transformation, and the finance profession. We're dedicated to delivering insightful content to empower your financial journey.