Lori Cashman
Contributor
Lori Cashman is a managing partner of Victress Capital, an early-stage venture capital firm that invests in high-growth companies meeting the needs of the evolving consumer market.
In the world of venture capital, we’re always talking about cash. You hear phrases like “cash burn,” “cash runway” and “cash on hand” every day from investors and founders alike.
Despite all this talk about cash, early-stage companies rarely scrutinize their inflows and outflows at a level that can unlock peak efficiency. Why are they missing the boat? Because the concept of working capital is not as widely understood as it should be.
We believe that building a rolling 13-week cash flow forecast (or a longer timeline once you get going) can help you dig deeper into your finances and find hidden cash reserves. We encourage our portfolio companies to do this exercise in good times and in bad and to always practice forecasting in times of uncertainty.
Building a rolling cash flow forecast is the single best tool you can have to understand where your cash is going, identify savings opportunities, ca …
