In plain English
Runway is your countdown clock. Take the cash in the bank, divide by how much more you spend than you earn each month, and that's how long you have to raise money, cut costs or start making a profit.
Example
A startup has $600,000 in the bank and spends $50,000 a month more than it brings in. That gives it 12 months of runway.
Not the everyday meaning
A strip where planes take off and land.
Why it matters
Runway decides when founders need to start fundraising. Raising money often takes months, so teams start well before cash runs low. It's also one of the first questions investors and boards ask, and it shapes hiring and spending decisions.
Common confusion
Runway vs. burn rate. Burn rate is how much cash you lose each month. Runway is how many months that leaves you. Cut the burn and the runway gets longer.