SaaS metrics
What is Runway?
Runway is how many months the company can keep operating on current cash given the burn rate — the clock between you and the next round.
Runway is cash on hand divided by monthly burn rate. Under 6 months is panic territory (not enough time to close a round). 12–18 months is the standard to negotiate without taking a discount.
Levers to extend runway: cut non-essential costs, renegotiate annual contracts, pull forward annual revenue with discounts, and freeze hiring.
Formula
Runway (meses) = caixa atual ÷ burn rate mensalUse it in practice
SaaS Simulator
Frequently asked questions
Does short runway close a round?
Closing with runway < 3 months is a huge disadvantage at the table. Start fundraising with at least 9–12 months in the bank.
Does runway account for revenue growth?
Sophisticated models do (projected burn month by month). The simple calculation uses constant current burn.