Glossary
Runway
How long a company can operate before it runs out of cash, at its current net burn.
Runway is cash on hand divided by monthly net burn: cash going out less cash coming in. It is quoted in months and sets how soon a company must raise again.
It depends heavily on what is assumed. A board deck may count committed but undrawn funding, or a cost plan not yet approved. The bank statement and the cash-flow forecast are the figures to check it against.
In Hebrides
When the board deck and the bank statement give different runway figures, research insights flags the disagreement and shows both sources.
Research insights