82% of businesses fail due to this—don't be next

Cash management tips attract VCs

Author

Michael Morgenstern
October 15, 2024

Happy Tuesday Brex community,

Nailing your cash management isn't just about keeping the lights on—it's about showing investors you know how to scale smart. With 82% of businesses going under due to poor cash flow management, this isn't a box you can afford to leave unchecked. Venture capitalists scrutinize cash flow like hawks; mishandling it is an avoidable red flag that can cost you funding and credibility.

If you're a founder with a solid balance sheet, here's how to stay ahead of the curve:

  1. Forecast like the future depends on it (because it does)
    Dive deep into your historical data and market trends to predict future cash needs accurately. Sharp forecasting lets you make proactive moves instead of reactive scrambles.

  2. Audit your cash flow regularly
    Keep tabs on where your cash is actually going versus where you thought it would go. Regular audits help you spot discrepancies early and adjust before small leaks sink big ships.

  3. Automate your outgoing payments
    Streamline bill payments to avoid costly late fees and free up your team's bandwidth for strategic work. Automation reduces errors and keeps your cash outflows consistent.

  4. Optimize payment schedules
    Negotiate better terms with suppliers and seize early payment discounts when it makes sense. Timing is everything—smart scheduling keeps your cash flow flexible and responsive.

  5. Tighten up your collections
    Speed up cash inflows by automating invoicing and follow-ups. Efficient collections reduce the risk of bad debt and keep your liquidity strong.

Investors aren't just backing your product; they're backing your ability to manage and grow their investment. Solid cash management shows you're not just burning through capital—you’re building something sustainable.

Growing together, Michael Morgenstern

  • Crosscut and Brex’s Annual Oktoberfest 2024 10/15 in Santa Monica

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Nami Baral & Nabin Banskota are the founders of Niural

Niural helps companies manage US and global payroll, PEO, benefits, and compliance in one intelligent platform. With AI agents doing the heavy lifting, Niural tackles complex HR & payroll tasks across the 150+ countries- from accessing high quality benefits and navigating local hiring laws to generating compliant contracts and running payroll. Companies typically replace 6-10 separate tools by switching to Niural's best-in-class platform.

Ambassador’s Perspective:
Niural has the rare capability to manage US payroll, PEO, benefits, EOR, and compliance in one place, setting the new standard in HR & Payroll. It connects with over 100 accounting and CRM systems and supports businesses in 150+ countries, unifying workflows and enforcing robust permissioning across multiple entities and jurisdictions. Because of this, CXOs love Niural. Niural delivers an audit-ready system while saving 30+ hours every month - empowering CXOs with detailed reports, streamlined workflows, and reduced costs — all within a single platform

Oscar Ramos and William Bao Bean are the General Partners of Orbit Startups

Orbit Startups is a Global South venture capital firm investing in tech startups that transform traditional industries to uplift 4 billion low-income consumers in emerging markets. Orbit empowers individuals and micro-SMEs through AI-driven training and software tools tailored to their needs. The firm also backs startups leveraging technology to make essentials like healthcare, education, and food more accessible and affordable. Orbit focuses on sustainable, scalable solutions to challenges in emerging markets, delivering both economic and environmental impact.

Orbit Fund I (2015) ranks in the top 5% globally, according to Burgiss Data, with millions of lives already positively impacted. With 15+ years of Emerging Markets experience,

Managing General Partners Oscar Ramos and William Bao Bean lead a 40+ member global team. In addition to hands-on support, Orbit connects startups to its 200+ portfolio companies and 250+ corporate partners, accelerating growth. As they say, "We help grow the business, then we help with fundraising." Orbit has invested in 200+ startups across Asia, Africa, and LatAm, including ELSA Speak (Vietnam), Videoverse (India), Dastgyr (Pakistan), MUTA (Colombia), MiDocOnline (Mexico), DXWand (Egypt), and Badili (Kenya).

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Don’t hesitate to reach out,🦾!