# Runway

*Startups & Venture Capital — Finicade finance glossary*

Runway is how many months a company can survive at its current burn before running out of cash. The operating rule is to raise with at least six months left, because a fundraise takes three to six months and desperation is visible in the terms. Extending runway means cutting burn or raising revenue, and cutting late is far more damaging than cutting early.

**Formula:** `Runway (months) = Cash in bank ÷ Net monthly burn`

**Also known as:** cash runway, months of runway

**Related terms:** [Burn Rate](https://finicade.com/glossary/burn-rate), [Bridge Round](https://finicade.com/glossary/bridge-round), [Down Round](https://finicade.com/glossary/down-round), [Seed Round](https://finicade.com/glossary/seed-round), [Unit Economics](https://finicade.com/glossary/unit-economics)

Source: https://finicade.com/glossary/runway