runway
Cash Runway
How many months a company can keep operating at current spend before it runs out of money.
When you'd see it: Anywhere money is being discussed — board meetings, startup news, layoff conversations. "We have 18 months of runway" means the company can keep going for 18 months without raising more cash or becoming profitable.
Why it matters: Runway is the survival horizon. When it shrinks, decisions get harder — hiring freezes, layoffs, and fundraising pressure are usually downstream of short runway. Beginners who understand this can read between the lines of company news.
Common mistakes: Confusing runway with revenue. Runway is about how long the cash lasts at current burn rate, not how much the company earns. A profitable company has effectively infinite runway; an unprofitable one's runway equals cash reserves divided by monthly burn.
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