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Finance

Runway

How many months you can keep operating before you run out of cash, at your current spending rate.

Example

₹1.2 crore in the bank with a ₹10,00,000 monthly burn gives 12 months of runway.

Formula

Runway (months) = Cash in Bank ÷ Monthly Burn

Related terms

Burn Rate
How much cash your company spends (beyond what it earns) each month before it becomes profitable.
Bridge Round
A smaller, quick raise to give you more runway to reach the next big milestone. A "down round" is a raise at a lower valuation than before.

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