Runway
The estimated time a company can continue operating before available cash runs out.
Plain English
How many months the company can keep going at its current spending.
In context
Runway is typically calculated from cash balance and net burn while assumptions can change with revenue and costs.
Example
“The funding round extends our runway to eighteen months.”
When you'll hear this
- board meeting
- fundraising
- budget planning
Common misunderstanding
Runway is an estimate and changes when spending revenue or financing changes.
Also known as
cash runway
Commonly used by
Related terms
Updated: 2026-08-25
