Understanding Startup Finances
Managing Startup Finances
Source:Kirsty Nathoo – Managing Startup Finances
Why You Must Watch This
In this talk, Kirsty Nathoo (YC Partner & ex-CFO) explains the most common mistakes founders make with money and how to avoid them — ensuring you stay fundable and in control.
Key Takeaways
- Know your numbers → Track cash, burn, runway, and key ratios (like revenue growth vs. expenses).
- Expenses rise over time → Don’t undervalue your time, underestimate hiring costs, or assume acquisition costs stay flat.
- Every hire is an investment → Measure ROI on people, and avoid over-hiring before finding product–market fit.
- Runway is everything → Never let it get too low before raising — always maintain visibility and buffer.
- Do more with less → The best startups focus on lean operations, strong ratios, and financial discipline
Everything You Need to Know on Financials
Source: Founders Network – Startup Financials 101: Everything You Need To Know
Why This Matters
82% of startups fail due to cash flow mismanagement. Mastering financial basics isn’t optional — it’s how you keep your startup alive, earn investor trust, and make smart decisions in uncertain markets.
Key Takeaways
- Fundamentals first → Track income, expenses, and net income early; build cash flow statements and balance sheets to forecast.
- Projections matter → Investors expect realistic growth (break-even ~2–3 years, doubling revenue yearly, solid margins, and clear exit strategy).
- Metrics to track → Revenue, net income, gross margin, burn rate, runway, CAC, LTV, churn, retention, ROI.
- Challenges → Limited funding, poor record-keeping, high product dev costs, fierce competition, rapid changes.
- Best practices → Build a financial plan (P&L, cash flow, margins), monitor metrics often, adapt quickly, stay transparent, and connect with other founders.
- Recession tips → Extend runway, cut non-essentials, focus on best customers, retain top talent.
Actionable Steps
- Build a basic income statement (revenue – expenses = net income).
- Track cash burn and runway monthly.
- Regularly review CAC, LTV, churn, and margins.
- Create financial projections aligned with milestones and scaling needs.
- Keep records clean and transparent for investors.
- Be lean but ready to invest when traction hits.
How to Present Financials for a Startup with No Revenue
Source: :Alejandro Cremades – How to Present Financials for a Startup with No Revenue
Why This Matters
Even if you have no revenue, investors will zoom in on your financials. Clear, credible projections show you understand your market, know your costs, and have a realistic path to monetization.
Key Takeaways
- Keep it simple & visual → Use clean graphs and summaries, not dense spreadsheets.
- Projections matter → Show 3–5 year outlooks with milestones, costs, and monetization paths.
- Highlight market size → Investors want to see a $1B+ opportunity to justify risk.
- Show acquisition strategy → Customer acquisition costs, distribution channels, and GTM access can substitute for early revenues.
- Investors benchmark → Make your numbers easy to digest so they can compare you against market peers and estimate ROI.
