Runway is the answer to the most important question in startups: how long until we run out of money? Every founder needs to know this number at all times — and most don't.
Startup runway is the number of months your company can operate before cash hits zero, assuming your current burn rate stays constant. It's not a prediction — it's a countdown. The goal is to always have enough runway to either reach profitability or raise your next round before the clock runs out.
You have $600,000 in the bank. Your monthly expenses are $80,000 and MRR is $15,000.
Net burn: $80,000 − $15,000 = $65,000/mo
Runway: $600,000 ÷ $65,000 = 9.2 months
The industry benchmark is 18–24 months. Here's how to interpret your number:
Why 18 months? Fundraising takes 3–6 months on average. You want at least 6 months of runway remaining when a new round closes. That means you need to start the process with 9–12 months left — which requires having 18+ to begin with.
Start fundraising when you have 12 months of runway left, not 6. The moment you feel the pressure of an empty runway, investors feel it too — and it costs you in valuation and terms. Raise from a position of strength.
Every additional month of runway gives you more time to hit milestones that increase your valuation. Here are the highest-leverage levers:
Burn rate is how fast you're spending cash each month. Runway is how many months that gives you. Burn rate is the speed; runway is the distance. You need both to understand where you stand.
Greenline calculates your runway automatically from your cash balance, burn rate, and MRR. Know your number before your investors ask.
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