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GLOSSARY

Runway

Months until cash is projected to run out.

Why it matters

Aim for ≥ 12–18 months post-raise to hit milestones and avoid fundraising under duress.

Worked example

Cash $1.2M; Net burn $80k/mo → 15 months of runway.

Common pitfalls

Using P&L profit instead of cash; excluding annual prepaids; ignoring hiring ramp and seasonality.

How to show in your deck

Use of funds slide: runway months before and after raise with hiring plan highlights.

Deck snippet

Runway 15 months post‑raise; hiring 6 roles across GTM/Eng.

Formulas

Runway (months)
Current cash balance / Net burn per month

FAQs

Related terms

Burn rate
DilutionBurn rate