Definition
The number of months a company can continue operating at its current burn rate before running out of cash.
Why it matters for growth
Runway is the single most urgent number for an early-stage founder, since it defines the deadline for reaching profitability or a next fundraise.
Example
A company with $600,000 in the bank and a $100,000 monthly burn rate has six months of runway.
FAQ
- What is Runway?
- The number of months a company can continue operating at its current burn rate before running out of cash.
- Why does Runway matter for growth?
- Runway is the single most urgent number for an early-stage founder, since it defines the deadline for reaching profitability or a next fundraise.
- What is an example of Runway?
- A company with $600,000 in the bank and a $100,000 monthly burn rate has six months of runway.