Startup Funding Espresso -- Financial Analysis

Financial Analysis Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In diligencing a startup, analyze the financial statements to understand the business better. Here are key items to check: Where does the revenue come from? What could stop or halt the revenue? How far is the company from profitability? How much cash is on hand and, given the burn rate, how much runway is available? What costs can be variablized down in case of a drop in business? Check the accounts receivables to see how fast customers are paying their bills. How much debt is on the balance sheet and what does it cost or when will it come due? In each category, start with the big numbers and then work your way down. For items that look out of the norm, ask the founder or CEO. See how much the team knows about their numbers and if they have a strategy for improving them. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let's go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.