Bursts of Color - Venture Debt and CFO Stuff

This week’s shout-out goes to the finance pros who are working overtime right now to keep our businesses afloat. Following are a few related resources from my favorite finance guy, Rob Krolik.

A common question this month is:

The good news is that there are alternative capital providers out there, and some may be a good fit for you. Here is a starter list of debt providers. Please keep in mind that most of these folks have been bombarded in the last few weeks, so you may get a warmer reception if you’re able to wait for a sunnier day. If you have others to recommend, please send them over and we’ll add to the list.

In the happier market of last month, some financial managers chose to invest their company’s cash in bonds and bond funds, which usually yield better than money market accounts. Unfortunately, many of those bonds are now effectively illiquid, or have to be sold at a big loss. Yuck. Anytime you have less than 18 months runway of “cash,” Rob suggests that you keep 100% of it in money markets and let your business growth drive the returns. While earning interest is nice, the main goal should be to have the cash available at anytime.

For those who have the high class problem of >18 months runway, here’s a template Investment Policy you may wish to review with your board before investing in anything with liquidity risk. The mantra is preservation of cash.

Rob recently co-authored Good CFO / Bad CFO for CFO Magazine (which, I’m sure, is already on your night stand). Teaser:

Hat tip here to an old Ben Horowitz post: Good Product Manager / Bad Product Manager.

This planning template has been making the rounds; it’s another helpful way to think about Plan B/C scenarios.