Definition
Runway is remaining cash divided by monthly net burn. It is a date, not a vibe. Founders use it to decide when to raise, cut, or change the model — and to stop pretending a low balance is “fine for now.”
In the room
How the word shows up in a real conversation.
₹48 lakh in the bank and ₹8 lakh net burn is about six months of runway. If a raise needs four months, you are already late.
Formula
Runway (months) = cash in bank ÷ monthly net burn
Common mistake
Counting a promised cheque as cash. Runway only counts money you already have.
India note
Build a buffer for GST, TDS timing, and customers who pay on 60–90 day terms. Booked revenue is not runway.
See also
Cash burn rate
Rate at which a company consumes its cash reserves over time.
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Unit Economics
Financial analysis of the profitability of individual units or transactions.
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Seed Capital
Initial funding provided to start a new business venture.
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Gross Margin
Percentage of revenue remaining after deducting the cost of goods sold.
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From the store
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