The new handbook, ‘How to demonstrate robust cash flow control post VC funding: A guide for CFOs and Founders’ covers two broad topics: what to prioritise when managing cash flow, and how to use spend management solutions to control spending post-VC fundraising. It’s aimed at startup Founders and CFOs who have raised VC-funding and are looking to build longevity.

The Covid-19 pandemic has manifestly changed how companies handle their finances. Some businesses have seen a partial recovery to their revenue and growth, whilst many others have been forced to reassess payment terms with suppliers and customers. The economic downturn of recent months has also contributed to reduced sales and impacted cash flow for many, particularly new businesses. In this climate, CFOs and Founders will often seek investment to drive revenue growth, whilst struggling to maintain sufficient cash flow, the cause of failure for nearly 50% of startups.

Even in a fluctuating market, it is crucial that startups sustain their operations; and for scaleups, to keep their investors happy. One key way to do this is with good cash flow management. Investors optimise for success by backing companies with a clearly defined path to revenue generation, profitability, and high margins. Once an investment is made, they expect to see good control of cash flow, gross profit, net burn, and runway.

Early stage companies are frequently early adopters of automation in tech, such as spend management software. Payhawk’s handbook offers concrete advice to Founders and CFOs that want to get the most out of their spend management software, to support day-to-day operations for their business, and for their investors, to demonstrate good unit economics, strong cash flow control, and concrete actions for profitability.

Hristo Borisov, Payhawk CEO and Co-founder says, “We’re pleased to launch our handbook, ‘How to demonstrate robust cash flow control post VC funding: A guide for CFOs and Founders.’ We’ve collated research and insight from a variety of VC firms and startups that gives Founders and CFOs the inside scoop on spend management in both the early stages of their business, and once they’ve secured VC funding. At Payhawk, we ourselves used these same tools to beat the statistics and become Bulgaria’s first unicorn, so we have confidence in our findings.”

Contributors to the handbook include VC firms, QED Investors and Early Bird Digital East Investors; investment analytics specialists, Essentia Analytics; and startups Heroes, VICIO, Rentals United and Hypoport.