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Money

Runway

How long the company can keep going before the money runs out, if nothing changes. Cash in the bank divided by what it loses each month.

You'll hear it as

We've got fourteen months of runway, so hiring is frozen until the next funding round.

Why it matters to you.

Short runway is behind most sudden hiring freezes, cancelled projects and urgent pushes for revenue. Once you know the number, those decisions stop looking random.

Related terms.

Videos.

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