How many months your company can operate at the current burn rate before running out of cash. Runway = Cash in Bank ÷ Net Monthly Burn Rate. Running out of runway = company dies. Fundraise when you have 9–12 months left — not 3. Investors can smell desperation.

Glossary→Runway

Startup Metrics

Runway

Definition

How many months your company can operate at the current burn rate before running out of cash. Runway = Cash in Bank ÷ Net Monthly Burn Rate.

Why founders care

Running out of runway = company dies. Fundraise when you have 9–12 months left — not 3. Investors can smell desperation.

Related terms

Burn Rate MRRMonthly Recurring Revenue

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