The short answer: The first 90 days after a raise decide whether the round buys the runway the pitch promised. Founders who spend that window in four steps (secure, instrument, plan, report) reach their first post-raise board meeting with a burn plan the numbers can defend. In the worked example below, a $4,000,000 seed round funds 17.2 months of runway, not the 25.4 months that day-one burn implies.
- Days 1–15: file Form D within 15 days of the first sale and split cash across accounts and banks.
- Days 16–30: run a weekly cash report and a 13-week forecast from reconciled books.
- Days 31–60: rebuild the burn plan by month, tied to the hiring plan and the milestones the round must fund.
- Days 61–90: close the books within 10 business days and send the first budget-vs-actual board packet.
- A $4,265,000 balance at one bank leaves $4,015,000, or 94.1%, above the FDIC limit.
Last updated October 2026.
A closed round changes the job of the finance function overnight. Before the wire, cash management meant stretching a small balance. After it, the work is protecting a large balance, pacing its spend, and proving to investors that the pace matches the plan.
This playbook sequences that work across the first 90 days after a raise. It covers the filing deadline that starts on the closing date, where the money should sit, which reports to switch on, and how to turn the pitch-deck burn into a monthly plan. A worked example runs the runway math for an illustrative seed-stage company.
What should a founder do with the money right after closing a round?
Protect it first, then spend it on a written plan. In the first two weeks, that means three tasks: meet the securities filing deadline, move the funds out of a single account, and set approval limits before new spending starts.
Most priced seed and Series A rounds rely on a Regulation D exemption. The SEC states it plainly: “A company must file this notice within 15 days after the first sale of securities in the offering.” The SEC Form D guidance defines the first sale as the date the first investor is irrevocably committed to invest. A deadline that falls on a weekend or holiday moves to the next business day. Company counsel usually files it, but finance should confirm the date in writing.
Approval limits come next. A new balance invites new vendors, so set a dollar threshold above which a second person signs off. Bill.com and most card platforms enforce this natively.
Where should startup cash sit in the first 30 days?
In at least two tiers: an operating account sized to near-term spend and a reserve that holds the rest. Concentration in one account at one bank is the main risk to manage.
The FDIC sets the limit: “FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category.” That figure comes from the FDIC deposit insurance overview. A company holding $4,265,000 in one corporate account at one bank has $4,015,000 uninsured, which is 94.1% of its runway.
A common structure keeps two months of planned burn in operating cash and moves the remainder to a reserve. Reserve options include sweep programs that spread deposits across several insured banks, a second bank relationship, and short-dated Treasury bills. The right mix depends on how fast cash must be reachable. Write the policy down, get board approval, and review it each quarter.
What cash reporting should be running by day 30?
Three reports: a weekly cash report, a 13-week cash forecast, and reconciled bank and card accounts. Each one depends on the last.
The weekly report is short. It shows opening cash, receipts, disbursements, closing cash, and the variance from last week’s forecast. One page, sent every Monday, read by the CEO and any finance lead.
The forecast extends that view forward. Our guide to the 13-week cash flow forecast covers the build. The forecast is only as reliable as the books underneath it. Every bank and card account in QuickBooks Online, Xero, or NetSuite should reconcile to the statement before the first forecast goes out.
By day 30, the company should be able to answer one question in under five minutes: how much cash is on hand today, and how much will be on hand in 13 weeks?
How do you set a burn plan against fundraising milestones?
Build net burn month by month from the hiring plan, then test the result against the milestones the next round requires. The deck usually quotes a single burn figure. The operating plan cannot.
Headcount drives most of the curve. Each planned hire raises monthly burn from its start date onward, so runway shrinks faster than the opening burn suggests. The burn rate and runway guide covers the base formulas, and common calculation errors are covered in why burn rate is often wrong.
Tie spend tranches to evidence. If the next round needs a revenue figure or a product release, release later hiring only when the leading indicators arrive. That method is laid out in milestone-based budgeting. Set one more rule with the board: the date the next raise begins, expressed as months of runway remaining.
Worked example: how long does a $4 million seed round actually last?
About 17.2 months in this illustrative case. The company closes a $4,000,000 seed round, holds $310,000 from before the raise, and pays $45,000 in transaction costs.
Opening cash: $4,000,000 + $310,000 − $45,000 = $4,265,000.
The burn plan has three stages. Months 1–3 run at $168,000 a month before new hires start. Months 4–9 run at $236,000 as five planned roles join. From month 10, burn holds at $287,000.
- Months 1–3: 3 × $168,000 = $504,000.
- Months 4–9: 6 × $236,000 = $1,416,000.
- Cash left after month 9: $4,265,000 − $1,920,000 = $2,345,000.
- Months covered after that: $2,345,000 ÷ $287,000 = 8.2.
- Total runway: 9 + 8.2 = 17.2 months.
Dividing opening cash by day-one burn gives $4,265,000 ÷ $168,000 = 25.4 months. The gap is 8.2 months of runway that never existed. If the board wants the next raise to begin with 9 months of cash left, the milestones must land by month 8, not month 16.
Treasury policy adds a smaller lever. With $336,000 in operating cash, the reserve holds $3,929,000. Each percentage point of yield on that reserve earns $39,290 a year, or about $3,274 a month.
What does each phase of the first 90 days after a raise deliver?
Each 30-day block ends with a deliverable an investor could inspect. The table lists the sequence.
| Window | Focus | Deliverable | Done when |
|---|---|---|---|
| Days 1–15 | Secure | Form D filed; operating and reserve accounts open; approval limits set | No single bank holds more than the policy allows |
| Days 16–30 | Instrument | Reconciled books; weekly cash report; 13-week forecast | Cash today and in 13 weeks is known in under 5 minutes |
| Days 31–60 | Plan | Monthly burn plan tied to the hiring plan and milestones | Runway is stated in months with hire dates included |
| Days 61–90 | Report | First post-raise close and budget-vs-actual board packet | The close finishes within 10 business days of month-end |
What should the first post-raise board packet show?
Cash, net burn, runway, and budget versus actual by line. Those four views tell investors whether the round is pacing to plan.
The packet depends on a timely close. A close that takes 25 days leaves the board looking at numbers almost two months old by the meeting date. A 10-business-day close keeps the gap near three weeks. The Continuous Close Method™ describes one way to get there. At Debit & Co., Aaron Ressel and Kevin Cahill review every post-raise close packet before it reaches a board.
Format matters less than consistency. Use the same layout every month so trends are visible. Our guide on how to present burn and runway to a board covers the format in detail.
Frequently asked questions
What should you do with the money right after closing a round?
Confirm the Form D filing date, split the funds into an operating account and a reserve, and set spending approval limits. Then build a monthly burn plan before new hiring starts.
What are effective cash management practices for early startups?
Reconcile every bank and card account monthly, send a one-page weekly cash report, keep a 13-week forecast, and spread balances so deposits do not sit far above the $250,000 FDIC limit at one bank.
How important is cash flow in the first year of a startup?
It sets the date of the next raise. A burn plan that ignores hiring ramps can overstate runway by months, as the worked example shows: 25.4 months on paper against 17.2 in practice.
How do you set a burn plan against fundraising milestones?
Build net burn month by month from the hiring plan, release later spending only when milestone evidence arrives, and agree with the board on how many months of runway should remain when the next raise begins.
What cash reporting should be running by day 30?
A weekly cash report, a 13-week cash forecast, and reconciled books in QuickBooks Online, Xero, or NetSuite. Together they answer how much cash is on hand now and in 13 weeks.
Sources: U.S. Securities and Exchange Commission, Filing a Form D Notice; Federal Deposit Insurance Corporation, Understanding Deposit Insurance (both accessed October 2026). The company, round size, transaction costs, burn stages, and hire counts in the worked example are illustrative.
