Runway
Definition
Runway is how long a company can operate before cash runs out: cash balance divided by net monthly burn.
How it comes up in fundraising
The working rule is to raise 18 to 24 months of runway and start the next raise with at least 6 to 9 months left, since processes take months.
Frequently asked questions
How much runway should a startup keep?
Post-raise, 18 to 24 months; fundraising with under 6 months of runway visibly weakens negotiating position.
How do I extend runway without raising?
Cut burn, accelerate collections, add non-dilutive sources like grants or revenue-based financing, and push pricing.
Round Funded resources
Related terms
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