Calculate how long your startup can operate with current cash
vc1Category: venture-capitalCalculate how long your startup can operate with current cash
Net Burn
$40,000
Monthly Revenue
$10,000
Runway
12 months
Your $500,000 cash reserves with $40,000 monthly burn rate provides 12 months of runway.
Startup runway represents the time a company can operate before running out of cash, calculated by dividing cash reserves by monthly net burn rate. This metric becomes critical during fundraising, as most investors expect startups to have 12-18 months of runway to reach key milestones between funding rounds.
Managing runway involves balancing growth investment against cash preservation. Companies typically trigger fundraising when runway drops below 6 months, accounting for the 3-6 month capital raise process. Extended runway provides flexibility to negotiate better terms, pivot strategy, or weather market downturns without desperate capital needs.
Net Burn
$40,000
Monthly Revenue
$10,000
Runway
12 months
Your $500,000 cash reserves with $40,000 monthly burn rate provides 12 months of runway.
Startup runway represents the time a company can operate before running out of cash, calculated by dividing cash reserves by monthly net burn rate. This metric becomes critical during fundraising, as most investors expect startups to have 12-18 months of runway to reach key milestones between funding rounds.
Managing runway involves balancing growth investment against cash preservation. Companies typically trigger fundraising when runway drops below 6 months, accounting for the 3-6 month capital raise process. Extended runway provides flexibility to negotiate better terms, pivot strategy, or weather market downturns without desperate capital needs.