Runway

What is Runway?

Runway is the amount of time a company can continue to operate at its current burn rate before running out of cash. It is calculated by dividing the total cash on hand by the monthly net burn.

Why It Matters

• It tells leadership exactly how much time they have to reach profitability or secure new funding.

• Monitoring runway is essential for avoiding sudden financial crises and making strategic long-term plans.

• It provides a clear deadline for achieving key milestones that will attract future investment.