Art of Spending Money Your Startup Raises

“You have got to spend money to make money” – anonymous. 

This adage rightly emphasizes the importance of spending money wisely in business. In today’s challenging business landscape, fundraising is challenging for every startup, but spending money is even more challenging. According to Forbes, many startups in the USA fail due to irrelevant money spent, which causes a money crunch in the long run. Bureau of Labor Statistics reveals that as of 2021, 20% of businesses failed in the first year, 50% within five years, and 65% within 10 years. Fortunately, as a startup, you can be one of those 80% that thrive in the first year. How? We have outlined some of the best tips and tricks to spend money that will deliver high returns. Stride along with the blog. 

The Best Funding & Spending Plan Use The Four’ T’

As a startup, you would have raised or are planning to raise money, right? However, things need to be clear and precise about spending money to fuel your business growth. 


One of the foremost metrics measuring the value of a new investment is time. Before spending money on anything new, it’s paramount for you to analyze the last money spent and the return you received. How do you do that? The formula is simple – cash on hand plus expected revenue minus burn rate – calculate this every month until the investment reaches zero. Whenever you put money into new work, analyze whether the work produced the desired results or not.  Cash in Hand = Revenue – Burn Rate 


Talent is the second most crucial investment in the fundraising cycle. However, the key here is a mindful investment of money. You only have to invest money to fill the company’s talent gap to accelerate output immediately. Secondly, you can invest in resources like sales, marketing, operations, and support. Finally, adding resources to finance, HR, and customer success and care will also make a huge difference. 


Technology is the backbone of any business these days, regardless of whether the business is tech-centric or not. Investing in new technology will be the X factor in determining how successful your business will be in the future. Advanced technology will automate the work process, reduce human error, and make things easier for the team. 


Last but not least, traction is one crucial point that helps you determine how much market share you will win. As a new business or startup, you must project your market share to attract investors. For fundraising and winning investors’ trust, you have to stay conservative and reveal your market share so that you don’t miss out on anything. 

By following the above points, you will master the art of spending money wisely, which will drive positive results. These tips will help you excel in your business and outperform your competitors.

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