Finance

What is Runway?

How many months a company can operate before its cash runs out.

Runway = cash in bank ÷ net monthly burn. Start fundraising with 9–12 months left.

Example

₹1.2 crore ÷ ₹12 lakh net burn = 10 months.

Go deeper · Founder Playbook, Level 9Bookkeeping, cash flow and runway for founders →

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