Runway
The amount of time a business can continue operating at its current burn rate before running out of cash, usually expressed in months.
Runway is calculated by dividing current cash reserves by the monthly burn rate, giving a straightforward estimate of how long the business can sustain its current spending without new revenue or funding.
Extending runway, whether through additional financing, reduced spending, or faster revenue growth, is often a central planning concern for growth-stage businesses deciding when and how much capital to raise.
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