Source: https://rivet.global/blog/treasury-management-for-startups-us
Published: 2026-09-23 · Updated: 2026-09-23 · By Alexia M.

# Treasury management for startups: runway, yield and safety

How startups manage cash after raising: operating vs reserve balances, T-bills and money market funds, FDIC limits, currency exposure and simple rules.

## Key takeaways

- Keep a few months of spend in operating accounts and put the rest in short-term, liquid government assets such as T-bills or government money market funds.
- T-bills and money market funds are not FDIC deposits; they carry market and provider risk.
- Spread large balances across institutions or use sweep networks so deposits stay within insurance limits.
- Hold foreign currencies you will spend, so a currency move does not shorten runway.

After a seed or Series A, a startup holds 18 to 24 months of runway. Leaving it all in one checking account is the most common treasury mistake, and SVB's failure in 2023 showed why.

## Three buckets

| Bucket | Amount | Where |
|---|---|---|
| Operating | 2 to 3 months of spend | Checking at one or two institutions |
| Reserve | The rest of runway | T-bills, government money market funds |
| Currency | Expected foreign spend | Balances in those currencies |

## Rules that keep it simple

1. Never more than a set share of cash at one institution.
2. Only short-term government assets for reserves.
3. Ladder maturities so cash arrives when needed.
4. Review monthly with the burn forecast.

## Insurance and risk

Deposits are FDIC insured up to $250,000 per depositor per bank per category. Sweep networks raise coverage. T-bills and money market funds are not deposits; they carry small market risk and provider risk.

## Currency exposure

A startup with half its team in Europe spends euros every month. If the dollar falls 10%, those costs rise 10%. Holding a few months of euros reduces the effect. See [foreign exchange risk for small businesses](/blog/foreign-exchange-risk-for-small-businesses).

## Paying into the United States: the local rail

| What | Detail |
|---|---|
| Local rail | ACH for batch payments; RTP and FedNow for instant transfers |
| Run by | Nacha for ACH; The Clearing House for RTP; the Federal Reserve for FedNow |
| Settlement | Same-day ACH within the business day, standard ACH the next; RTP and FedNow in seconds, 24/7, where both banks take part |

Source: [Nacha: Same Day ACH](https://www.nacha.org/rules/same-day-ach-moving-payments-faster). Checked when this guide was last updated; the scheme's own page has the current figures.

## Where Rivet fits

Rivet holds operating balances in USD, EUR, GBP and more for teams that spend across currencies, with payouts to 120+ countries and approvals on Growth. Rivet is not a bank; regulated partner institutions hold the funds, and Rivet does not offer treasury investments. See [multi-currency cash flow forecast](/blog/multi-currency-cash-flow-forecast).

## Questions

### What is treasury management for a startup?

Deciding how much cash to keep available, where to put the rest, and how to keep it safe and earning something.

### Are T-bills safe?

They are backed by the US government and are short-term. Their value moves slightly with rates, and you need a platform to hold them.

### How much should stay in checking?

Many startups keep two to three months of spend in operating accounts and the rest in reserves.

### What about foreign currency?

If you pay a team abroad, holding some of their currency reduces the risk that a currency move raises your costs.