Runway
Intermediate Level
Bengaluru
Entrepreneurship
2 views
Definition
The amount of time a startup can operate before running out of money, typically measured in months.
Detailed Explanation
Runway = Cash Balance / Monthly Burn Rate. A 12-18 month runway is considered healthy. Startups must raise funds or achieve profitability before runway ends.
Example
With ₹1 crore in bank and ₹10 lakh monthly burn, the startup has 10 months runway.
Local Context (Bengaluru)
Bengaluru startups closely monitor runway, especially during funding winters.
Related Terms
V
Venture Capital
Financing provided to startups and early-stage com...
M
Micro, Small and Medium Enterprises
Classification of businesses based on investment a...
K
Karnataka Startup Policy
Government framework providing incentives, funding...
B
Belagavi Industrial Cluster
A manufacturing hub in North Karnataka specializin...
U
Unicorn
A privately held startup company valued at over $1...