VC-backed startups are increasingly retaining higher cash balances rather than rapidly burning through funds. This "cash is king" strategy is emerging as lessons from stumbles by companies like Uber and WeWork. For example, the health tech startup SonderMind raised $3 million in early 2019 but still has 80% of those funds in cash reserves. A consulting firm also found the average cash balance among startup clients rising from $3.5 million to $4.5 million in 2019, with lower monthly cash burn. Retaining more cash allows startups to better weather potential economic storms.