Tip #69: Showing you run out of cash

Tip 69: Running out of cash. Do not show a set of projections where you run out of cash. A negative number in the “cash position” or “ending cash” line is not going to work.

This one sounds, and is, obvious. Just to recap, as investors our primary concern is losing all our investment, which happens when the company runs out of cash. Presenting slides showing you running out of cash should be, and usually is, termination of your pitching opportunity.

And yet, we frequently see decks showing negative cash balances. Here’s one from an otherwise strong pitch. It was a brave move.

As we said last time, there is only one single “minimum cash position”, so show it as a number. But make that number MORE THAN ZERO!