💸 How I’d Manage a $3M Seed Round
I’ve raised over $50M in seed capital as a founder across my companies, but I’ll be honest, I didn’t really learn cash management until SVB crashed in 2023.
That Friday, I was panicking. I had payroll due in days and was on the phone with every banker I knew trying to move funds out before things froze. That moment burned one lesson into me: as a founder, your cash strategy is your survival strategy.
When you raise your first real round, it’s easy to focus on hiring, shipping, and runway math and forget that managing your cash is now a full-time job. Here’s how I think about startup treasury setup once that wire hits your account with four buckets: Operating, Reserve, Yield, and Contingency.
1️⃣ Operating:
Keep 6–9 months of burn liquid. Use a modern bank like Mercury or Rho with sub-accounts for payroll, taxes, and payables. Automate categorization and approvals.
2️⃣ Reserve & Yield:
Move the rest into yield-generating, safe instruments: FDIC-insured sweep accounts, short-term T-bills via Meow/Vesto/Arc, or government-only money-market funds. You can earn 4–5 % while staying fully insured or backed by Treasuries.
3️⃣ Credit & Liquidity:
Even if you don’t need it, set up lines early. Ramp, Brex, or Mercury IO for corporate cards, and a small LOC with your bank after 6 months of deposits.
4️⃣ Contingency:
Always have a backup bank. If your primary is digital, your secondary should be a traditional one (think Chase or BofA). Keep at least one month of burn there in case wires freeze or systems glitch.
A solid setup like this can extend your runway by months and keep 100 % of your deposits insured.
I broke this down (with a model and a 1-page cash management policy template) in a doc you can use with your board or CFO.
👉 Comment “CASH” below and follow me so I can send you the link.