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What is Runway?

Posted by Erica Duignan Minnihan on May 19, 2016 2:00:00 PM

Runway tells you how much time a company has before it proverbially “crashes and burns” or for the more optimistic, how long it has to “get off the ground”. This means, how many months can the company continue to cover overhead and salaries before it runs out of cash and needs to close down. Hopefully the company will either reach cash flow break even, or some sort of inflection point in growth that will encourage follow on investment before that point.

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Topics: Venture Investing, Runway