Runway Calculation
Runway shows how long until you run out of cash.
Calculate months of runway remaining based on cash balance and burn rate. Plan for fundraising and profitability.
Runway shows how long until you run out of cash.
Ideal: 18-24 months runway. Minimum: 12 months. Start fundraising when you have 12-18 months left (fundraising takes 3-6 months). Below 9 months runway, prioritize reducing burn over growth. VCs want to see 12+ months runway.
Four options: 1) Reduce burn (cut costs, defer hires), 2) Increase revenue (focus on sales, raise prices), 3) Raise a bridge round (smaller funding to extend runway), 4) Find path to profitability (cut burn to below revenue). Act immediately at 9 months.
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