Runway

The Runway (or airstrip in French) is a term commonly used in start-ups and finance to refer to the length of time a business can continue to operate before running out of funds. The runway is generally calculated based on the company's available cash flow and its burn rate (the rate at which it spends its money). In other words, it's how long a business has to reach profitability or raise additional funds before going bankrupt. For example, if a startup has 500,000 euros in cash and its monthly expenses are 50,000 euros, it has a 10-month runway. A short runway often encourages entrepreneurs to speed up the search for new financing or to reduce costs to extend the life of their business. A longer runway allows more time to adjust the strategy and stabilize operations.