Runway
How many months your startup can survive before running out of cash.
Definition
Runway is calculated by dividing your current cash balance by your net monthly burn rate. It tells you how much time you have to hit milestones, raise your next round, or reach profitability. Most VCs want to see 18-24 months of runway post-fundraise to give startups enough time to execute.
Why it matters for founders
Runway dictates urgency. With 6 months of runway, you need to fundraise now. With 18 months, you can focus on growth. Running out of runway before hitting milestones is the most common way startups die.
Example
$1.2M in the bank with $100K/month net burn = 12 months of runway. If you're raising a Series A, you should start the process at month 6 (fundraising takes 3-6 months).
How Foundra helps
Foundra helps you maximize runway by compressing validation timelines from months to days, so you spend less cash on the wrong direction.
Start your free trial→Related free tools
Related terms
Burn Rate
How fast your startup is spending cash each month.
Unit Economics
The revenue and costs associated with a single unit of your business (usually one customer).
Pre-Seed Funding
The earliest stage of startup funding, typically from personal savings, friends and family, or angel investors.
Seed Round
The first significant round of venture funding, typically $500K-$5M.
Break-Even Point
The point where your total revenue equals your total costs, resulting in zero profit or loss.