Sign in
Markets & Metrics

Runway

Months of cash left at the current burn rate

What it is

Runway is how many months a company can keep operating before it runs out of cash, calculated as cash in the bank divided by net monthly burn. With $2.4M in the bank and $200k net burn, runway is 12 months. It is the countdown clock of a startup.

Why it matters

Runway dictates urgency: it tells founders when they must raise, cut costs, or hit profitability. Investors check it to gauge how much pressure a company is under.

Resources