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How Founders Should Think About Cash Management
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How Founders Should Think About Cash Management

Seema Amble, Melissa Wasser and Emily Westerhold
a16z, 2023
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Editorial Rating

8

Qualities

  • Analytical
  • Applicable
  • Background

Recommendation

A start-up is always a risky endeavor, and so Andreessen Horowitz professionals Seema Amble, Melissa Wasser and Emily Westerhold offer entrepreneurs a useful primer on a new business’s most basic need: solid cash management. Cash is the lifeblood of a new business, and knowing its sources and uses is what distinguishes the successful start-up from the rest. Entrepreneurs will find this concise report a useful aid for developing a consistent process that accounts for a firm’s cash needs in both the short and long terms.

Take-Aways

  • Proper cash management begins with an understanding of what cash is and is not. 
  • The deployment of cash should follow a needs forecast and budget. 
  • Start-up founders need to understand their options in the event of a cash shortage.
     

About the Authors

Seema Amble, Melissa Wasser and Emily Westerhold are partners at Andreessen Horowitz.

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