Runway is the number of months a startup can continue operating before running out of cash, calculated by dividing the current cash balance by the monthly net burn rate. It is the most critical financial metric for early-stage companies because it determines how much time remains to hit milestones, raise the next round, or reach profitability.
Aim for ≥ 12–18 months post-raise to hit milestones and avoid fundraising under duress.
Cash $1.2M; Net burn $80k/mo → 15 months of runway.
Using P&L profit instead of cash; excluding annual prepaids; ignoring hiring ramp and seasonality.
Use of funds slide: runway months before and after raise with hiring plan highlights.
Runway 15 months post‑raise; hiring 6 roles across GTM/Eng.
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