Question 1

What's a healthy runway for a startup?

Accepted Answer

18-24 months is the recommended minimum runway at any stage. Fundraising takes 3-6 months, so you should start the process at 12+ months of runway. Series A companies typically want to show 18 months of runway post-raise.

Question 2

What's the difference between gross and net burn?

Accepted Answer

Gross burn = total monthly expenses. Net burn = expenses minus revenue. Investors focus on net burn — it shows how quickly you're consuming cash after accounting for what the business earns.

Question 3

How do I extend my startup's runway?

Accepted Answer

Cut lowest-ROI spend (marketing channels, tools, contractors), defer non-essential hires, negotiate payment terms with vendors, accelerate collections, and explore non-dilutive options like revenue-based financing or SBIR grants.

Question 4

When should I start fundraising?

Accepted Answer

Start fundraising when you have 12+ months of runway and strong momentum metrics. Raising from a position of strength (growing fast, low burn) gives you significantly better terms. Desperate fundraising at 6 months runway is extremely difficult.

Startup Burn Rate Calculator — Runway & Cash Flow Tool

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