You will always want to know your startup’s cash out date. Your cash out date is the day your startup will run out of money in your bank account and you essentially will no longer be able to run the company. It is a day all startup founders fear and it is a day you should work toward never getting too close to.How to Calculate Your Startup’s Cash Out Date Average Cash Burn Rate / Cash on your Balance Sheet = # of Months to Cash Out Date For “average cash burn rate”, use a 3 or 6-month average You must know, there are different versions of restricted cash and things like that. So if you have a lot of cash tied up with your landlord that you’re not going to be able to access, then don’t include that in your cash on your balance sheet Because it can give you a false sense of security that maybe you have more cash than you actually do.Cash Out Date Tips: Ideally, you always have 12 months of cash in the bank When fundraising, we recommend startups raise 18-24 months of cash Provide Cash Out Date to investors… Don’t surprise your investors. Be visible and always communicate this number with your BOD. You don’t want them to have a confidence issue with you, the founder.