Avoiding the startup death spiral: How to fix your cash flow crisis

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Operating with limited resources and aggressive growth targets, a cash flow crisis can easily trigger a death spiral for a startup. Byju’s, once valued at $22 billion, faced a severe cash flow crisis stemming from aggressive expansion, leading to insolvency proceedings and a significant drop in valuation. This is just one of the numerous examples in the Indian startup universe of cash flow crises felling a startup.By understanding common pitfalls, implementing robust financial practices, and combining foresight with the right strategies, founders…



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Avoiding the startup death spiral: How to fix your cash flow crisis



Operating with limited resources and aggressive growth targets, a cash flow crisis can easily trigger a death spiral for a startup. Byju’s, once valued at $22 billion, faced a severe cash flow crisis stemming from aggressive expansion, leading to insolvency proceedings and a significant drop in valuation. This is just one of the numerous examples in the Indian startup universe of cash flow crises felling a startup.By understanding common pitfalls, implementing robust financial practices, and combining foresight with the right strategies, founders…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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