Metrics & Performance
Runway
The number of months a company can continue operating at its current burn rate before running out of cash.
Runway is the amount of time a startup has before running out of cash, calculated as: Cash on hand / Monthly net burn rate. Example: $3M in the bank with $300K monthly net burn = 10 months runway. Fundraising should begin when you have 6-9 months of runway remaining — earlier if you can. Starting too late creates desperation (investors sense it) and removes negotiating leverage. Most investors want to see 18+ months of runway at any given time, which signals the company isn't in 'survival mode' and can focus on building rather than fundraising. Extending runway through expense cuts, revenue acceleration, or bridge financing can buy critical time to reach a fundable milestone.