In finance, especially in the startup and business context, Runway refers to the amount of time a company can continue operating before it runs out of cash, assuming its current burn rate (monthly expenses) stays the same.
It answers the question: "How many months can we survive with the money we have?"
Runway (in months) = Cash on Hand ÷ Monthly Burn Rate
Cash on Hand: Total available liquid funds
Burn Rate: Average monthly cash outflow (typically expenses minus revenue)
If a startup has ₹60 lakh in the bank and spends ₹10 lakh per month:
Runway = ₹60 lakh / ₹10 lakh = 6 months
That means the company can survive for 6 months without new revenue or funding.
Indian startups typically raise funding to secure 12–18 months of runway.
During economic slowdowns, many focus on extending runway rather than scaling fast.
Common advice: Start fundraising at least 6 months before runway ends.