Metrics
Runway
Quick definition
Months of cash remaining at current net burn.
Runway = Cash on hand / Average net monthly burn. Investors generally want to see 18–24 months of runway at fundraise close. Less than 6 months and you're in raise-or-die territory.
Related metrics terms
ARR (Annual Recurring Revenue)
Annualized value of your subscription revenue at a point in time.
MRR (Monthly Recurring Revenue)
Monthly equivalent of ARR, useful for month-over-month tracking.
Net Revenue Retention (NRR)
Revenue from your existing customer base 12 months later, including expansion and churn.
Gross Revenue Retention (GRR)
NRR without upsell — what you keep before expansion.
See this in action
Insights and tools where Runway shows up.
Frequently asked questions
- What is Runway?
- Runway = Cash on hand / Average net monthly burn. Investors generally want to see 18–24 months of runway at fundraise close. Less than 6 months and you're in raise-or-die territory.
- Why is Runway important for startups?
- Runway is a metrics concept that matters for startup founders because it directly affects fundraising readiness, financial decision-making, or operational discipline at the stage where mistakes are expensive to undo. Founders who understand it have a meaningfully easier time in diligence, board meetings, and investor conversations.
- What category does Runway belong to?
- Runway is a Metrics term in the StartupCFO finance glossary — alongside other metrics concepts that founders, CFOs, and accountants use in daily startup operations and reporting.
- Where can I learn more about Runway?
- Beyond this definition, see the related metrics terms below, or explore StartupCFO's insights and tools that put Runway in context. For specific situations, talk to a fractional CFO who can walk through your numbers.
Service spotlight
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