Startup Finance FAQ / Strategic Finance

How can I protect my startup's working capital from banking risks?

Fast Answer:

There are several ways your startup can mitigate banking risks and protect its working capital. These include purchasing deposit insurance over and above the $250K FDIC insurance, maintaining deposits with “too big to fail” banks, and diversifying working capital across multiple banks. Burkland recommends startups adopt a treasury management policy that is approved by the management team and board of directors.