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Runway
Definition
How long a company can keep operating before it runs out of money at its current burn rate.
In Plain English
Runway is like how many months of fuel are left in the tank.
Real-World Example
A startup with 12 months of runway has about a year to raise money, cut costs, or reach profitability.
Why It Matters for Your Work
Runway shapes hiring, product scope, fundraising urgency, and risk tolerance.
Common Mistake
Talking about runway without including burn rate assumptions.
Related Terms
View Pivot
Pivot
A meaningful change in strategy based on evidence that the current approach is not working well enough.