Runway Is a Decision Clock
Explain runway as the number of decision cycles left, not just months of cash.
Cash on hand only becomes useful when you turn it into decision time. The formula is the start, not the answer Runway starts with cash divided by monthly net burn. If a company has $1.2M and loses $210K per month, the rough runway is 5.7 months. That number is helpful because it makes risk visible, but it is dangerous when treated as exact. Monthly burn rarely stays flat. Collections slip, renewals hit, hires start mid-month, and revenue timing changes. The decision clock Use runway to schedule decisions backward. If fundraising takes 12 weeks, diligence takes 4 weeks, and board approval…
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