runway
Say it: RUN-way /ˈrʌnweɪ/ · noun
What “runway” means
How long a business can last before its money runs out.
More precisely: How long a company can keep operating before its money runs out.
Example: “After the funding round, we have eighteen months of runway.”
When to use it
In start-up finance discussions, when planning how much operating time the company's remaining money will buy.
Memory trick
Like a plane, a business needs enough runway before it takes off.
It can also mean
At an airport, the strip where planes take off and land.
Similar words
cash horizon, time left, breathing room
Quick check
Your company has enough cash to pay its costs for another seven months. What do those seven months represent?
runway or profit?
Show the answer
runway
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