Companies running short of cash.
When a US company had under a year of cash at its burn rate, it filed to raise money within a year 51% of the time.
- Filed to raise money within 3 months21%
- Within 6 months35%
- Within a year51%
- Median move over the days around a raise filing−6.2%
Based on 27,148 company month ends.
Method
How this is measured
Cash and the yearly cash burn from each company's financial filings at every month end, then whether it filed to raise money (a prospectus or registration for shares or debt) within 3, 6 and 12 months. The move around a raise is from the last close two days before the filing to the second close after it, against the S&P 500. Measured on Steady's price history, which holds only companies still trading, so companies that later failed are missing and the picture is kinder than it was. A pattern across many companies says little about any one company.
Steady publishes these figures for information only. Nothing here is investment advice.