Logo Launch IT (Fast)
GLOSSARY

Runway

“

A runway refers to the amount of time your startup can operate before running out of resources, typically measured in months. It reflects your financial sustainability and ability to reach key milestones.

What is a Runway?

A runway is the duration your startup can continue operating based on its current financial resources.

Why It Matters

Having a sufficient runway is crucial to meet milestones, secure funding, and sustain operations.

Examples

  • If your startup has a 12-month runway, it means you can operate for a year without additional funding.
  • Shortening your runway may lead to rushed decisions or an inability to pivot effectively.

Related Concepts

Runway is closely tied to burn rate, which is the rate at which a startup spends its available funds.

Share this term

Browse All Terms

Related Terms

A/B testing

A

A/B testing is a method where two versions (A and B) of a webpage or app are compared to see which performs better in achieving a specific goal, helping you make data-driven decisions.

API (Application Programming Interface)

A

An API (Application Programming Interface) is a set of rules and protocols that allows different software applications to communicate with each other.

ARPU (Average Revenue Per User)

A

ARPU (Average Revenue Per User) is a key metric that calculates the average revenue generated by each user of a product or service over a specific period.

ARR (Annual Recurring Revenue)

A

Annual Recurring Revenue (ARR) is the predictable, annual revenue generated from subscription-based products or services.

Affiliate marketing

A

Affiliate marketing is a performance-based marketing strategy where a company rewards affiliates for driving traffic or sales through their marketing efforts.

Agile development

A

Agile development is a software development approach that emphasizes flexibility, collaboration, and iterative improvements.