Runway

How it is used

A key number for founders and investors. You have, extend, calculate or run out of runway. Founders usually start fundraising while they still have many months of runway left, because rounds take time to close.

Example sentences

1. With 1.8 million in the bank and a burn of 100k, we have 18 months of runway.

2. We delayed two hires to extend our runway until the next round.

Common collocations

• months of runway
• extend the runway
• run out of runway
• short runway

Related terms

• burn rateThe amount of money a startup spends each month beyond what it earns, showing how fast it is using up the cash in the bank.
• cash flowThe movement of money into and out of a business over a period. Positive cash flow means more money is coming in than going out.
• funding roundA planned period in which a startup raises a set amount of money from one or more investors, usually on the same terms and at the same valuation.
• break evenTo reach the point where revenue equals costs, so the company is neither losing money nor making a profit.

This word in other fields

The same English word can have a different meaning in another field:

• runway · Aviation

More terms: Unit Economics & Metrics

• revenue
• customer acquisition cost
• unit economics
• lifetime value
• gross margin
• MRR
• profitable
• KPI