Runway Glossary

Browse 15 runway terms defined in plain English, from the cultural dictionary of computing.

15 Runway Terms

Bridge Loan
Short-term debt used to extend runway until a larger financing event, sale, or other capital source closes. Bridge loans are often emergency tools rather than...
Bridge Round
An interim financing round raised to extend runway between major rounds, often when a company is not yet ready for its planned next fundraise. Bridge rounds...
Burn Down
To spend down cash reserves over time, often used in discussions of monthly burn and runway. The phrase is especially common when boards evaluate how fast a...
Burn Rate
The rate at which a company spends its cash reserves before generating positive cash flow. Gross burn is total monthly spending; net burn subtracts revenue....
Cash Burn
The rate at which a company is spending more cash than it brings in, usually measured monthly. Cash burn is one of the clearest signals of how much runway...
Cash Runway
The amount of time a company can continue operating before running out of cash, based on current burn and expected inflows. Runway determines how urgently a...
Death Valley
A dangerous period where a startup has not yet reached sustainable traction or financing stability but is already consuming significant resources. It is...
Extended Runway
A longer operating timeline before cash runs out, usually achieved through fundraising, cost reductions, or stronger revenue collection. Boards often push for...
Extension Round
An additional financing raised after the main round, often on similar terms, to bring in more capital or extend the company's timeline to the next milestone....
Gross Burn
The total amount of cash a company spends in a period before subtracting incoming revenue. It is often contrasted with net burn, which accounts for revenue...
Monthly Burn
The amount of cash a company spends in a typical month, often used to estimate runway and financing urgency. Teams sometimes mean gross burn and sometimes net...
Net Burn
The net amount of cash a company loses in a period after accounting for revenue or other operating inflows. Net burn is often more useful than gross burn for...
Seed Extension
Additional capital raised after an original seed round, often on similar terms, to extend runway or support extra milestones before a full Series A. It is...
Underfunded
Operating with less capital than the business realistically needs to pursue its plan at an acceptable level of risk. Being underfunded can force discipline,...
Venture Debt
Debt financing provided to venture-backed companies, usually to extend runway without a full equity round. Venture debt preserves ownership more than equity...

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