Real-world examples of cash flow statement examples for startups

Most founders obsess over revenue charts and ignore the one report that actually predicts survival: the cash flow statement. The best examples of cash flow statement examples for startups show how money moves in and out of the business month by month, not just how profitable you look on paper.

Let’s walk through several realistic scenarios. These are simplified, but they mirror what early-stage investors, accelerators, and fractional CFOs see every day.

Example of a pre-revenue SaaS startup burning cash

Picture a 6‑month‑old B2B SaaS startup. No paying customers yet, but a small angel round in the bank and a dev team on payroll.

Key facts for the month:

• Starting cash: $250,000 (from a seed round)
• No revenue yet
• Monthly payroll: $40,000
• Product tools, hosting, and software: $5,000
• Office and admin: $3,000
• New laptops: $12,000 (capital expenditure)

Operating activities (indirect method)
Net income: -$48,000 (pure burn, no revenue)
Non-cash items: none
Changes in working capital: minimal at this stage

Net cash from operating activities: -$48,000

Investing activities
Purchase of equipment (laptops): -$12,000

Net cash from investing activities: -$12,000

Financing activities
No new funding this month

Net cash from financing activities: $0

Net change in cash: -$60,000
Ending cash: $190,000

What this tells the founder: at this burn rate, runway is a little over 3 months unless they slow hiring or raise more capital. This is a clean, simple example of how a cash flow statement exposes reality faster than an income statement.

Example of an early e‑commerce startup: profitable on paper, cash-poor in reality

Now consider a small e‑commerce brand doing $80,000 in monthly sales with strong growth, but constantly stressed about cash.

Key facts for the month:

• Starting cash: $35,000
• Sales (on credit cards and BNPL providers): $80,000
• Cost of goods sold: $40,000
• New inventory purchased: $60,000 (to prep for a campaign)
• Marketing spend (paid ads): $20,000
• Operating expenses (rent, software, admin): $10,000

On the income statement, this month might show:
Revenue: $80,000
COGS: -$40,000
Gross profit: $40,000
Operating expenses: -$30,000
Net income: $10,000 profit

Now look at the cash flow statement.

Operating activities (indirect method)
Net income: +$10,000
Increase in accounts receivable (payment processors holding funds, BNPL delays): -$15,000
Increase in inventory: -$20,000 (because inventory rose more than it was sold)
Increase in accounts payable (supplier terms): +$5,000

Net cash from operating activities: -$20,000

Investing activities
No capital expenditures this month: $0

Financing activities
Short-term working capital loan draw: +$15,000
Loan repayment: -$3,000

Net cash from financing activities: +$12,000

Net change in cash: -$8,000
Ending cash: $27,000

On paper, the startup is profitable. In cash terms, it’s bleeding. This kind of situation shows why investors often ask for examples of cash flow statement examples for startups instead of just pitch decks. The statement reveals whether growth is self-funded or debt-fueled.

Seed-stage SaaS startup with annual prepayments (ARR vs. cash)

Another classic example of a cash flow statement example for startups: a SaaS company that bills annually upfront.

Key facts for the quarter:

• Starting cash: $400,000
• New annual contracts: $300,000 (all collected upfront)
• Recognized revenue this quarter: $75,000 (1/4 of the annual contracts)
• Payroll and contractors: $150,000
• Sales and marketing: $60,000
• General & administrative: $30,000
• Capitalized software development costs: $25,000

Income statement view (quarter):
Revenue recognized: $75,000
Expenses: -$240,000
Net income: -$165,000 loss

You’d think things look ugly. But on the cash flow statement:

Operating activities
Net income: -$165,000
Non-cash items (amortization of capitalized dev): +$5,000
Increase in deferred revenue (cash collected but not recognized): +$225,000
Small changes in working capital: -$10,000

Net cash from operating activities: +$55,000

Investing activities
Capitalized software development: -$25,000

Net cash from investing activities: -$25,000

Financing activities
No new equity or debt this quarter: $0

Net change in cash: +$30,000
Ending cash: $430,000

This is one of the best examples of how SaaS accounting can mislead founders who only look at net income. The business is losing money on paper but adding cash because of upfront billing. When investors ask for examples of cash flow statement examples for startups, this pattern is exactly what they’re trying to assess: is your cash runway actually improving or just your ARR slide.

Venture-funded growth startup: heavy financing cash flows

Now let’s look at a Series A startup that just raised $5 million and is ramping up hiring and marketing.

Key facts for the year (simplified):

• Starting cash: $600,000
• Equity raised: $5,000,000
• Revenue: $1,200,000
• Net loss: -$2,000,000
• Capital expenditures (build-out of a small facility, equipment): $400,000
• Debt repayment from an old bridge note: $300,000

Operating activities
Net income: -$2,000,000
Depreciation and amortization: +$50,000
Increase in accounts receivable: -$150,000
Increase in accounts payable and accrued expenses: +$200,000
Other working capital changes: -$50,000

Net cash from operating activities: -$1,950,000

Investing activities
Capital expenditures: -$400,000

Net cash from investing activities: -$400,000

Financing activities
Proceeds from equity issuance: +$5,000,000
Repayment of bridge note: -$300,000

Net cash from financing activities: +$4,700,000

Net change in cash: +$2,350,000
Ending cash: $2,950,000

This is a classic example of a cash flow statement example for startups in high-growth mode: negative operating and investing cash flows, heavily offset by financing. Investors will accept negative operating cash flow for a while, but they want to see that over time, operating cash flow trends toward break-even as the model scales.

If you’re preparing your own model, studying real examples of cash flow statement examples for startups at this stage can help you avoid fantasy projections like “we turn cash-flow positive in 6 months” with no underlying change in unit economics.

Bootstrapped services startup: strong operating cash, minimal investing

Not every startup is venture-backed. Service businesses often have very different cash dynamics.

Key facts for the quarter:

• Starting cash: $25,000
• Consulting revenue collected: $150,000
• Contractor payments: $60,000
• Founder salary + small team: $45,000
• Software and tools: $6,000
• Travel and marketing: $9,000
• No major equipment or capital expenditures

Operating activities
Net income: +$30,000
Minor non-cash items: +$2,000
Decrease in accounts receivable (clients paying faster): +$10,000
Increase in accounts payable (slower payments to vendors): +$3,000

Net cash from operating activities: +$45,000

Investing activities
None: $0

Financing activities
Owner draws: -$15,000

Net cash from financing activities: -$15,000

Net change in cash: +$30,000
Ending cash: $55,000

This is one of the best examples of cash flow statement examples for startups that are bootstrapped: almost all movement is in operating cash flow, and the founder directly controls distributions. A bank or SBA lender reviewing this statement would see a healthy, cash-generating business with room to service a small loan.

Hardware startup: heavy investing cash flows and long payback

Hardware founders live in a different reality: long development cycles, manufacturing deposits, and chunky capital expenditures.

Key facts for the year:

• Starting cash: $1,000,000 (seed round)
• Pre-order revenue collected: $300,000
• R&D and engineering payroll: $500,000
• Prototyping and testing: $150,000
• Manufacturing tooling: $350,000
• Inventory build for first production run: $250,000
• General & administrative: $150,000

Operating activities
Net income: -$850,000
Non-cash depreciation: +$20,000
Increase in inventory: -$250,000
Increase in accounts payable: +$100,000
Increase in customer deposits (pre-orders): +$300,000

Net cash from operating activities: -$680,000

Investing activities
Manufacturing tooling and equipment: -$350,000

Net cash from investing activities: -$350,000

Financing activities
No new equity this year, but a small equipment loan: +$150,000
Loan repayments: -$20,000

Net cash from financing activities: +$130,000

Net change in cash: -$900,000
Ending cash: $100,000

This example of a cash flow statement example for startups in hardware shows why these businesses often need larger rounds or non-dilutive support. Negative operating and investing cash flows hit at the same time, long before revenue ramps. When founders present examples of cash flow statement examples for startups like this to investors, they’re essentially making a case that the long cash payback will be worth it.

How investors actually read these cash flow statement examples

Looking across these real examples of cash flow statement examples for startups, patterns emerge. Sophisticated investors don’t just scan the net cash number; they ask:

• Is operating cash flow trending toward break-even as revenue grows?
• Are investing cash flows building long-term capacity (R&D, tooling, product) or just patching mistakes?
• Are financing cash flows a one-time boost or an ongoing crutch?
• Does the cash runway, based on actual burn, match the story in the pitch deck?

In 2024–2025, with higher interest rates and more selective venture funding, investors are far less tolerant of “growth at any cost.” They want to see:

• Cleaner unit economics and better cash conversion cycles
• Lower reliance on short-term, expensive debt for working capital
• Evidence that marketing spend produces cash payback within a reasonable window

If you’re building your own model, use each example of a cash flow statement example for startups above as a pattern: SaaS with annual billing, e‑commerce with inventory swings, hardware with heavy capex, and services with strong operating cash.

For a deeper grounding in how cash flow statements are structured under U.S. GAAP, the U.S. Securities and Exchange Commission provides investor education materials on financial reporting: https://www.investor.gov/introduction-investing/investing-basics/how-reads-understand-financial-statements
The Financial Accounting Standards Board (FASB) also publishes standards and guidance: https://www.fasb.org
And for broader small-business finance education, the U.S. Small Business Administration offers resources on financial management: https://www.sba.gov/business-guide/manage-your-business/finances

Practical tips for building your own startup cash flow statement

After reviewing these examples of cash flow statement examples for startups, a few practical lessons stand out:

Use monthly periods, not just annual summaries.
Runway is a monthly problem. Quarterly or annual views hide short-term squeezes like a big inventory buy or a late enterprise customer payment.

Separate recurring burn from one-time items.
In your operating cash flow, clearly distinguish between regular payroll and expenses vs. one-time legal fees, a conference, or a one-off consulting project. Investors want to know your true, repeatable burn.

Model best-case, base-case, and worst-case cash scenarios.
In 2024–2025, many founders are building three cash flow models: optimistic growth, realistic growth, and a “survival mode” plan that cuts marketing and slows hiring. Each version produces a different example of a cash flow statement example for startups, and boards increasingly expect to see those.

Tie your cash flow statement to real operational levers.
If your operating cash flow is consistently negative, the fix is rarely “raise more money” alone. It’s usually:

• Shortening customer payment terms
• Negotiating better supplier terms
• Reducing inventory days on hand
• Cutting or reallocating underperforming marketing spend
• Re-thinking hiring plans vs. revenue traction

When you can point from a line on your cash flow statement to a specific operational decision, you’re thinking like a CFO, not just a founder.

FAQ: examples of cash flow statement examples for startups

What is a simple example of a cash flow statement for a very early startup?
A very early startup with no revenue might show negative operating cash flow from salaries and software, small investing cash flow from buying laptops, and positive financing cash flow from a $100,000 angel check. The net effect is that cash increases in the month of funding, then steadily declines as burn continues. That’s the simplest example of a cash flow statement example for startups in the pre-revenue stage.

Which examples of cash flow statement examples for startups do investors like to see?
Investors like to see operating cash flow improving over time, even if it’s still negative. The best examples include SaaS startups where upfront annual payments create positive operating cash flow, or services businesses where strong margins quickly translate into cash. What they dislike are statements where operating cash flow stays deeply negative while financing cash flows do all the work.

Can a startup be profitable and still have negative cash flow?
Yes, and it happens often. An e‑commerce startup that’s profitable on its income statement can still have negative cash flow because it’s pouring cash into inventory and waiting on delayed payments from payment processors or BNPL providers. That’s why real examples of cash flow statement examples for startups often show profit and cash moving in opposite directions.

How often should a startup prepare a cash flow statement?
Monthly is standard for serious founders, especially in the first few years. Quarterly is better than nothing, but it can hide short-term crunches. In volatile periods—fundraising, big product launches, or major hiring pushes—many founders track a rolling 13‑week cash flow forecast alongside their historical statement.

Where can I learn more about reading and building cash flow statements?
The U.S. SEC’s investor education pages explain how to read cash flow statements in plain language: https://www.investor.gov/introduction-investing/investing-basics/how-reads-understand-financial-statements
Universities like Harvard Business School publish articles and online resources on financial statements and cash flow analysis: https://online.hbs.edu/blog/post/financial-statements
The SBA also offers small-business financial management guides that, while not startup-specific, help you structure basic statements correctly: https://www.sba.gov/business-guide/manage-your-business/finances

If you use the examples of cash flow statement examples for startups in this article as templates—and then layer in your own numbers with brutal honesty—you’ll have a financial story that investors, lenders, and your future self can actually trust.