“Cash is king” mantra raising its head again as “winds of change” appear
We and probably you have heard it for years. “Cash is king,” people will tell you, and that’s particularly true for early stage start-ups relying mostly on investor capital rather than revenues from sales.
With that reality which should always be in the minds of entrepreneurs, Crunchbase News recently noted that “rising inflation, a stalled IPO market, and ongoing instability sparked by Russia’s war in Ukraine have injected new caution into start-up investing.” As a result, at least some investors and others in the industry are suggesting that entrepreneurs consider conserving cash. Actions that contribute to that slowdown in spending are obvious – pulling back on hiring, shedding big expenditures like real estate, and in more rare cases, laying off employees.
