Startups exist as long as they have money in the bank — it seems so simple, but founders often overlook this aspect being busy building their company. Meanwhile, empty coffers are the top reason why startups fail. According to CBInsights, 38% of startups shut down because they run out of cash or fail to attract new funding. It's a common scenario when startups spend a lot and are short on cash while expecting additional funding from investors.
Meanwhile, empty coffers are the top reason why startups fail. According to CBInsights, 38% of startups shut down because they run out of cash or fail to attract new funding. 38% 38% It's a common scenario when startups spend a lot and are short on cash while expecting additional funding from investors. But this may not happen, and the company will close. Counting on existing funds and lowering the burn rate, instead, can prolong your runway.