Business Opportunities Weblog

October 7, 2005 by Dane Carlson | 1 Comment

Fred Wilson:

The single most important financial metric for any startup company isn’t revenues, margin, headcount, or profits. Those are all important, for sure. But the number that matters most is the cash balance.

Because cash is king.

I know that in some markets cash is trash, but in the venture capital business cash is always king.

Alan Shugart once said, “cash is more important than your mother.”

That’s because you can’t pay your employees, your rent, or your suppliers with revenues or profits if there is no cash.  And that’s a very possible scenario.

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Tags: Financing