Runway (Startup)
Definition
The colloquial term for cash runway, representing the number of months a company can continue operating at its current net burn rate before its cash is exhausted. Runway is used interchangeably with cash runway in common usage but is defined precisely in the FFI Standard as the net-burn-based calculation set out under the Cash Runway definition.
Common Misapplication
The most common misapplication is stating runway based on gross burn rather than net burn for a company with meaningful revenue. Gross-burn-based runway understates the actual period available to the company and creates unnecessary urgency in capital-raising decisions.
FFI Standard Reference
This term is defined and applied in Book 1, Section 1.2: The Cash Management Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Runway (Startup). https://ffistandard.org/glossary/runway-startup/. 2026.