Months until cash hits zero at the current burn rate.
Fundraising takes 3–6 months; the standing rule is to start raising with 9–12 months of runway left. Runway is a countdown, not a KPI to admire.
Formula: Runway = Cash ÷ Monthly Net Burn
Example: $780,000 ÷ $40,000 burn = 19.5 months.
FAQ
What is Cash Runway in simple terms?
Fundraising takes 3–6 months; the standing rule is to start raising with 9–12 months of runway left. Runway is a countdown, not a KPI to admire.
How is it calculated?
Runway = Cash ÷ Monthly Net Burn. Example: $780,000 ÷ $40,000 burn = 19.5 months.