Startup Runway

Runway is the single most important operational metric for pre-profitable startups. It determines how long you have to reach the next milestone before needing to raise again.

Key rules of thumb: - Raise when you have 6+ months of runway left (not 2 — fundraising takes longer than founders think) - Keep minimum 12 months of runway at all times post-raise - Default assumption: fundraising takes 3–6 months - Series A fundraising can take 6–9 months

Ways to extend runway without cutting team: - Reduce CAC by shifting to organic channels - Raise prices — a 20% price increase on existing customers adds revenue immediately - Cut software subscriptions — most startups spend 20–30% too much on SaaS tools - Annual prepay offers: give customers 2 months free for annual payment - Delay non-critical hiring

Fixed-price development vs hourly: hourly development is one of the biggest runway drains for technical startups. A fixed-price agency protects runway by eliminating open-ended dev spend.