MEPX
Chapter 7 of 10All chapters
  1. 1Ideas
  2. 2Testing the idea
  3. 3Talking to customers
  4. 4Building the first version
  5. 5Product-market fit
  6. 6Funding
  7. 7Runway and burn
  8. 8Founders and early team
  9. 9Growth
  10. 10An honest picture

Chapter 7 of 10

Runway and burn

The number that governs everything.

Counting it

Cash divided by net monthly spend gives months of survival. Below about six months, options narrow sharply and negotiating position collapses.

  • Raise before you need to, because desperation is visible and priced in.
  • Cutting burn buys time, which buys the chance to be right.

Default alive

Ask whether current growth reaches profitability before the money runs out. If not, the plan depends on a future raise, which is a decision worth making consciously.