Runway

Runway estimates months until cash reaches zero at current burn. It converts burn into time for iteration and execution.

Runway is the number of months a company can operate at current net burn before cash hits zero.

Model optimistic, base, and conservative scenarios. Longer runway reduces forced decisions and creates room for strategic bets.

Runway is the number of months you can operate at your current net burn before cash runs out. Update your forecast monthly, and model optimistic, base, and conservative scenarios. Longer runway gives you time to iterate and avoid forced decisions.

Use net burn.

Divide current cash balance by monthly net burn to estimate months of runway.

$600k cash, $60k burn → 10 months.

Provide a cash and burn example to compute runway and discuss sensitivity to burn changes.

Using uncertain receivables, ignoring planned changes to burn, or not modeling multiple scenarios creates false confidence.

Target ≥ 12–18 months runway post‑raise.

Targets vary; many teams aim ≥ 12–18 months post‑raise to allow iteration.

Refresh cash forecasts monthly and use conservative assumptions for inflows.

Runway depends on burn rate and informs hiring, pricing, and fundraising choices.