FOUNDMENTALSStep 1 of 7
Lesson 8 of 10

Burn Rate and Runway — The Startup Clock

The simple version

Every startup has a clock ticking. Burn rate is how fast you're spending money. Runway is how long until the clock hits zero. If you raise $2M and spend $200K per month — you have 10 months of runway. After that, you either raise more money, become profitable, or shut down.