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.
See this in action
Insights, guides, 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 shows up in fundraising readiness, financial decision-making, and operational discipline at the stage where mistakes are expensive to undo. Founders who understand it are better prepared for 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 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
Want runway you can actually trust?
Our CFOs build a real operating model with growth, hiring, and scenario layers, not a single-point divisor.
