Runway
How long a startup can operate before it runs out of cash at its current burn rate.
Runway is calculated as cash in the bank divided by net monthly burn. It tells founders how many months they have to hit milestones or raise more money. Investors expect founders to raise with enough runway (typically 12–18 months) to reach the next value inflection point rather than just surviving.
Examples
A startup with £300k and £25k monthly burn has 12 months of runway. — Founders begin fundraising at 9 months of runway to avoid a cash crunch.
How it relates to The Startup Foundry
Runway planning is core to being fundable. The Foundry helps you model how much to raise and when, so you reach investability milestones before cash runs low.