Runway
Version 1.0.0 · Updated 2026-07-30
CORE DEFINITION
The number of months a company can survive before running out of cash, given its current burn rate.
SCAFFOLDING EFFECT
Reduce cognitive load
Survival countdown. Whether you quit your job or start a business, always keep an eye on your runway. All strategic actions (expansion, layoffs, pivots) must be planned based on the length of the runway. A runway of less than 6 months can cause distorted actions.
Anchor fast decisions
Runway refers to the number of months a startup can sustain operations with its existing cash without new financing, calculated as cash balance divided by monthly net burn. It is a lifeline metric that determines the urgency of fundraising and cost reduction.
MINIMUM ACTION
In progress 0/1Practice this model in one real situation:
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Source support: Explicit
- en.wikipedia.orghttps://en.wikipedia.org/wiki/Runwayverified
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