Runway FAQ
What is startup runway?
Startup runway is the number of months your company can continue operating before running out of cash, given your current burn rate and revenue.
How much runway should a startup have?
Most advisors recommend maintaining at least 12-18 months of runway. Less than 6 months is considered critical.
What is net burn rate?
Net burn rate is your total monthly expenses minus monthly revenue. It reflects how much cash you actually consume each month.