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Money

What is Runway?

How many months you can continue at the current burn. It converts a vague worry into a date.

Money

The definition

How many months a business can keep operating before it runs out of cash.

An example

$40,000 in the bank against $8,000 a month is five months, so the decision point is month three, not month five.

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Questions people ask

What is Runway?

How many months a business can keep operating before it runs out of cash. How many months you can continue at the current burn. It converts a vague worry into a date.