Runway
Content
Definition
Runway refers to the amount of time a startup can continue operating until it needs to secure additional funding, calculated based on current burn rate and existing financial reserves.
Usage and Context
Runway is the amount of time a startup can continue to operate before needing additional funding.
Frequently asked questions
- What does extending runway mean? Extending runway means finding ways to stretch the time a startup has before it runs out of money, usually by cutting costs or raising more funds.
- What is runway time in startup? Runway time in a startup is the length of time the business can keep running before its cash reserves run out.
- How long should runway be for startup? A startup should have a runway to cover 12-18 months of operating costs.
Benefits
Runway is the time a startup can operate before needing more funding, based on its burn rate and reserves.
Conclusion
Runway shows the length of time a startup can operate before needing more money.
