Runway

How many months your company can keep operating before it runs out of money, at its current rate of spending.

Example

You have $50,000 in the bank, spend $8,000 a month and make $3,000 a month. Net burn is $5,000, so runway is about 10 months.

Important

Runway is the single most important number a founder tracks. Everything else — hiring, fundraising, pricing — is decided against it.

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