What should startups do with their cash after raising?

A strategic guide for startup founders navigating treasury decisions in 2025

You’ve just raised a round. The term sheet is signed, the funds have landed, and your startup’s bank balance looks healthier than ever. But now comes a less glamorous, yet critically important question:

Where should you actually put the money?

In 2025, the answer isn’t simple. We’re in a volatile global environment – interest rates are falling in Australia, but sticky inflation keeps them higher overseas. The AUD is fluctuating more than usual, and startups with global vendors or customers are exposed to real currency risk.

For some a single high-yield savings account might get you some of the way there. But today’s best-performing startups are treating treasury like a strategic function and reaping the benefits.
Here’s how.

Rethinking Treasury as a Strategic Function

Historically, startup treasury was an afterthought. But that’s changed.

In Australia, the RBA continues to hold rates relatively steady, making the opportunity cost of leaving money idle still sky high. At the same time, startups are more global than ever – paying contractors in USD, collecting revenue in EUR, investing in products priced in multiple currencies.

Founders now face questions like:

• Should we hold excess USD to hedge FX exposure?
• How do we optimise yield without compromising liquidity?
• Can we build an investment policy without needing a full-time CFO?
• These aren’t just financial questions – they’re operational and strategic.

Adopt a Tiered Cash Strategy (3 Buckets You Actually Need)

Drawing from best practices seen across hundreds of startups, here’s a modern, startup-friendly model for allocating your post-raise funds:

1. Operating Cash (1–2 months runway)
Purpose: Cover burn, payroll, day-to-day ops
Tools: At-call, high-interest business bank accounts
Best Practices: Use 2–3 banking relationships for redundancy and security

This bucket is about access, not yield. Make it easy to move funds, but don’t let too much sit here unused.

2. Reserve Cash (2–4 months runway)
Purpose: Medium-term buffer or cash for near-term growth initiatives
Tools: Money market funds, sweep accounts
Best Practices: Seek T+1 or T+2 liquidity and diversify across multiple providers

Think of this like your startup’s “emergency fund” with yield. You don’t touch it often, but it’s there if needed.

3. Strategic Cash (6+ months runway)
Purpose: Maximise returns on truly surplus capital
Tools: Term deposits, fixed-income funds, laddered maturities
Best Practices: Consider locking in rates across maturities and currencies

This is where you can earn real return. But timing matters – ensure you’re not stuck if your growth plan accelerates.

Don’t Sleep on FX Risk

If your startup earns or spends in multiple currencies, foreign exchange (FX) exposure can sneak up on you. In 2025, the AUD has been swinging sharply, making treasury missteps costly.

Modern treasury tools help you:

• Monitor currency movements in real time
• Set alerts for target rates
• Use AI-driven timing recommendations for conversions
• Understand your exposure at a glance

Even if you’re not a multinational, FX risk matters… especially if you’re billing customers in USD or paying global teams.

Treasury Tech: What Startups Should Expect in 2025

The best startups aren’t managing cash in spreadsheets anymore. Treasury platforms now offer:

• Unified views of all accounts and currencies
• Automated cash positioning across banks
• Real-time yield optimisation based on market rates
• Scenario planning for interest rate moves

And it’s not just for the big players. Tools like Primary make this level of sophistication accessible to startups, with integrations and AI-powered insights baked in.

Summary: Smart Cash is a Competitive Advantage

Raising capital is just step one. What you do with that capital sets top-performing startups apart.
In 2025’s market, founders who take treasury seriously – by segmenting cash, hedging FX, and using modern tools – outperform. Those who don’t? They leave returns on the table and open themselves to unnecessary risk.

Primary helps startups manage their treasury like the best.

From cash segmentation to FX to forecasting, our platform is purpose-built for the new financial reality.