Crijn Bouman, founder of Epyon Power, told me once:
We found out that the cash was running out too fast and as a typical technology startup, it takes a little longer to develop the product than anticipated, it takes a little bit more money than anticipated, the market is a little later.
Certainly, this is a very common situation, when you’re attempting to develop innovative products and services.
As a founder, you must pay special attention to the cash your startup has available now and in the near future. Once it’s a limited resource, it will be consumed while you are not able to generate enough revenue to offset the overall costs. And without money, your startup is over.
So, to be prepared for such challenge, I strongly recommend you to understand and keep in mind these 3 financial indicators: Cash Available, Cash Burn Rate and Cash Runway.
Continue reading “3 Key Financial Indicators That May Save Your Startup’s Life”