Our 3/13/23 Note to Heavybit Founders & CEOs - Key Banking / Cash Management Steps to Take This Week
[Note: This is the email we sent to our founders and CEOs last night - the situation is obviously changing by the moment. We're sharing here in case it is helpful to the broader community. It's not specific advice for you or your situation.]
The last few days have been nerve-wracking for everyone and we have been working closely with all active portfolio companies to ensure continuity of business. We currently believe everyone is now in a position to meet their payroll and other obligations. If anything changes or you have any concerns about your ability to make payroll and other payables this week and month, get in touch with us immediately so we can help.
For all companies—regardless of where you are banking—there are some key actions you should take calmly, but immediately this week.
This event underscores the importance of risk assessment for cash & treasury management. It is our view that all material balances should always either be insured or under segregated custodianship. Early-stage companies without a finance function are most likely to be out of compliance with this policy, though this event has exposed that many large sophisticated organizations (and investors) are as well. This is a good time to review.
