The Auxo Blog

Raising capital at the wrong time or for the wrong reasons is one of the biggest mistakes an early stage founder can make: it's distracting, expensive, and can create an opportunity for all sorts of additional headaches down the line.

Debt is too often ignored by startup founders who are thinking about raising capital. In the right circumstances debt can be a fast, flexible, and reliable form of financing that also has the benefit of reducing dilution and loss of control.

There are a plethora of capital sources available to startups and other high growth businesses. At Auxo we’ve seen them all, so we have a pretty good sense for what the benefits and drawbacks are of each. This week we're talking equity - the most popular form of startup financing.

Cash flow modeling is arguably the most essential tool for startups to forecast and plan their operations. A 13 week cash flow forecast, also known as a “rolling” cash flow forecast, will help you prevent the nightmare scenario of missing payroll.

Good cash flow management is how you prevent your company from being reliant on outside financing, its how you minimize your equity dilution, and its how you change the stakes at the negotiating table when you do finally go out to raise capital. This week we discuss the differences between the income and cash flow statements, and why startups should be paying attention to cash flow.

What is Auxo Partners? We're a team of startup finance executives, investment bankers, and private equity professionals using our skills to help startups grow more quickly and with better financial control. Tune in to learn more, and we'll see you in our next blog post where we begin breaking down key finance concepts!