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.
For example
With 2 crore in the bank and a 20 lakh monthly net burn, a startup has ten months of runway before it must raise or reach profitability.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.
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