Runway
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.
Benefits
Runway is the time a startup can operate before needing more funding, based on its burn rate and reserves.
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.
Key Takeaway
Runway shows the length of time a startup can operate before needing more money.