Startup Metrics

Cash Runway

Definition

What is Cash Runway?

The estimated time before cash runs out at the current burn rate.

Example in practice

₦120 million cash and ₦10 million monthly burn provide 12 months of runway.

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The rate at which a company spends cash, commonly measured monthly.

Recurring subscription revenue normalised to one month.

Recurring subscription revenue normalised to one year.

Money set aside rather than spent, often for emergencies or future goals.

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