You Should Be Collecting At Least 100% Of Your MRR Each Month in Cash. Ideally, 110%+.

As B2B startups land bigger customers, they often stop collecting cash effectively, SaaStr founder Jason Lemkin warns. Moving from self-service payments to annual deals with net-thirty or net-sixty invoicing creates a cash drain: invoices pile up unpaid because nobody follows up, and many startups collect only sixty to seventy percent of their monthly recurring revenue in actual cash—often without even knowing it. Lemkin's solution is a single metric: collect at least one hundred percent of your MRR in cash each month, ideally one hundred ten percent or more. The difference is stark: hit that target and your runway can double while revenue and expenses stay the same.

Listen to this story

Hear this and more stories in a personalized audio briefing.

Open The Chonkerton