burnKnow your cash runway!
May 3, 2021
Thankfully, the Cash Runway is easy to measure. You simply need to divide your cash reserves by your Net Burn Rate. So, if your Net Burn Rate was $10,000 per month, and you have cash reserves of $60,000, your Cash Runway is 6 months. If you had cash reserves of $100,000, but a Net Burn Rate of $50,000, you’d have a very short runway of only 2 months.
