Aaron Vick

Imagine this – a plane’s picking up speed, the wind is rushing, it’s about to launch itself into the bright blue beyond of the sky. If the runway’s too short the plane will coming to a halting stop, and it would be a waste of land and resources if the runway were too long. 

This is an analogy for a startup runway. A “startup runway” is the number of months a company can operate before it runs out of money, and it’s one of the most important calculations an early-stage startup founder makes. If a start-up founder gets this calculation correct, there success is far more likely!

In other words, think of it as a roadmap to your success through a few quick, easy calculations.

Calculating the Gross Burn Rate

The gross burn rate is the total amount of cash spent each month. For instance, if you begin the year

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