Metric
Runway
Also known as: cash runway
The number of months a company can continue at the current burn rate before running out of cash.
Runway = cash in bank / net burn per month. It's the most fundamental survival metric for startups.
2026 VC wisdom: maintain at least 18 months of runway. Below 12 months you must actively raise or cut costs. Good founders monitor runway weekly and plan funding rounds well before the runway ends.