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stripe.com

1 resource from stripe.com we point founders to, and the questions each answers.

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Free Beginner

Stripe's founder guides are clean, trustworthy primers on the core financial concepts every founder must track, burn, runway, and cash management. Written for operators, not accountants.

Startup Financials: Burn Rate & Runway, Stripe / Founder Guides

From stripe.com by Stripe guide library

  • Runway = cash balance divided by monthly net burn
  • Cash, not profit, is what actually kills startups
  • Start reacting to a shrinking runway 6-9 months out, not at the last minute
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Answers What financial basics does every founder need to understand? What is burn rate and runway, and how do I calculate them? How should I manage cash flow so my startup doesn't run out of money? How do I read a P&L, balance sheet, and cash flow statement?
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