The amount of time a company has before it runs out of cash, assuming current burn rates.
Why it matters: Runway is the ultimate countdown clock for a startup. Founders typically need to start fundraising when they have 6 to 9 months of runway left.
In practice: If a startup has $1,000,000 in the bank and a net burn rate of $100,000 per month, they have 10 months of runway.