HUB 5
Startup Financial Planning: Runway, Burn and Capital Strategy
Financial planning determines whether a startup survives long enough to reach its next milestone.
What is runway?
Runway is the time a company can operate before running out of cash.
Use the Startup Runway Calculator to determine your current position.
What is burn rate?
Burn rate is the rate at which a company spends capital.
Understanding burn is essential for managing runway.
How should founders plan capital?
Capital planning should align:
costs
growth targets
fundraising timelines
Use the Fundraising Needs Calculator to model capital requirements.
Why financial planning matters
Without financial clarity:
companies run out of capital
fundraising becomes reactive
leverage is lost
Structured planning allows founders to control timing and outcomes.
FAQs
What is runway?
Runway is the time a company can operate before running out of cash.
What is burn rate?
Burn rate is the rate at which a company spends money.
How do startups calculate funding needs?
By modelling expenses, growth and timelines.
Why is financial planning important?
It ensures survival and strategic fundraising timing.
How much runway should a startup have?
Typically 12–18 months depending on stage.