Introduction to Startup Finance
Written by Harry Prabandham
Curated by Rubric Financial
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How Startup Finance Is Different
- Traditional businesses optimize for profit from day one; startups often operate at a loss intentionally to capture market share and grow quickly
- Startup finance is built around runway (months of cash remaining), not annual profit. Survival is the first financial metric that matters
- Investor reporting, equity management, and cap table governance don't exist in traditional small businesses but are foundational in venture-backed startups
- Financial decisions in startups are made under extreme uncertainty. Models and forecasts are directional tools, not precise predictions
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About the author
Harry PrabandhamFounder & CEO
Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.
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