Runway

How many months your company can keep operating at its current spend before the bank account hits zero. Cash in the bank divided by how much you lose each month.

Runway (months) = cash in bank / monthly net burn

Why it matters

Runway is the clock every startup decision runs against. It tells you how long you have to hit the next milestone, and when you need to start raising or cutting, usually a few months earlier than founders like to admit.

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