Minding the Gap: Financial Planning Between Funding Rounds
Securing investment is often a milestone moment for growing businesses. At Martin & Company we always suggest considering what happens in the space between funding rounds — when the runway starts to shorten, and uncertainty begins to creep in? This period, often underestimated, is where robust financial planning becomes not only essential but strategic.
Cash Flow is King
Between funding rounds, cash flow management becomes the heartbeat of business stability. It’s crucial to forecast realistically — not just best-case scenarios. Regular cash flow monitoring allows you to spot early warning signs, prioritise spending, and maintain breathing space while continuing to operate effectively.
Cutting back doesn’t mean halting progress. Review every outgoing: can you renegotiate supplier contracts, defer non-critical investments, or pause discretionary spending? These decisions may feel uncomfortable but can be vital to weathering the gap without compromising core functions.
Extend the Runway, Not the Risk
The goal is clear: extend your financial runway without sacrificing momentum or over-leveraging the business. This might involve adjusting growth targets or delaying hires, but it also opens the door for creative thinking. Can you unlock revenue from existing clients with upsells or new service packages? Is there potential to generate short-term income streams that don’t require major capital investment?
Many businesses also overlook the value of strategic partnerships — collaborative projects or cross-promotions that allow for market growth without heavy spend. These can not only support cash flow but strengthen investor confidence ahead of your next round.
Communicate Transparently
Financial planning isn’t just about spreadsheets — it’s about clarity. Investors, team members, and stakeholders will respect honest communication over false optimism. Demonstrating that you have a clear grip on your financial position, and a plan for bridging the funding gap, builds trust and positions you as a capable steward of capital.
Prepare Early for the Next Round
Ironically, the best time to start planning for your next raise is often immediately after closing the last one. Keep your financials investor-ready. Track metrics that matter — customer acquisition cost, burn rate, recurring revenue — and have a clear narrative around how previous funds have been used.
In conclusion, the space between funding rounds isn’t a pause — it’s a proving ground. With disciplined financial planning, this in-between phase can be an opportunity to build resilience, sharpen strategy, and position your business for long-term success.
If you would like to discuss your business needs Call Martin & Company on 021 422 7240 or email info@martinandcompany.ie
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