[imkevingao]

Well the central question is why did you raise the money? Your case seems to be atypical, but I think the best thing to do right now is to grow your business.

Instead of letting everything stay on a static basis of consistent 5k burn rate on a 9k monthly revenue, why not think of strategies to increase burn rate and increase revenue? If you took investor's money, I believe the key thing to do right now is to think how to increase your investor's stock value, which will also benefit you.

Don't even consider putting in a CD and Savings. If you do, it would be considered unethical if you're going to earn your investor the pathetic 3-4% in risk free asset, he's better off investing it from a mutual fund.

Hire. Spend. Grow. Never let cash sit idle, be a magician and transform money into more money.

[gersh]

Over-spending has been the doom of too many startups. Don't just grow for the sake of growing. Plan strategically and try to get your business profitable at least on an operating basis. More revenues does not mean more profits. Some things take money but there are other things that just require time. Sometimes, you just need to be around for so long for some things.

Keep the money in an FDIC-insured account, and don't worry about the interest. You need to focus on your business.

[pbreit]

This is terrible advice.