How much runway should a startup have?
Most startups aim for 18–24 months of runway after a raise and start fundraising with 6+ months left. Learn the benchmarks and calculate your own runway.
Runway is how long your cash lasts at your current burn rate. How much you should hold depends on stage, but there are well-established rules of thumb that keep you raising from a position of strength rather than desperation.
The benchmark: 18–24 months
After a raise, the common target is 18–24 months of runway. That gives you 12–18 months to hit milestones plus a few months to actually close the next round. Start fundraising with at least 6 months of cash left.
Runway danger zones
| Runway | Status |
|---|---|
| 18+ months | Healthy — operate and grow. |
| 12–18 months | Start planning the next raise. |
| 6–12 months | Actively fundraising or cutting burn. |
| Under 6 months | Danger zone — raises take 3–6 months to close. |
Default alive vs default dead
Paul Graham's framing: a startup is default alive if, on current growth and expenses, it would reach profitability before running out of cash — and default dead if it would not. Knowing which you are should drive every spending decision.
How to extend runway
- Reduce net burn (cut non-essential costs, slow hiring).
- Grow revenue to lower net burn.
- Negotiate annual upfront deals to pull cash forward.
- Raise a bridge round if milestones are close.
Quick runway check
Run the numbers on your own startup
Use the free Runway calculator — no signup, instant results.
Open the Runway CalculatorFrequently asked questions
How many months of runway should a startup have?
A common target is 18–24 months after a raise, and you should generally start fundraising again with at least 6 months of cash remaining.
Why is 6 months considered the danger zone?
Fundraising typically takes 3–6 months to close. With under 6 months of runway you risk running out mid-process, which weakens your negotiating position or forces a down round.
How do I calculate runway?
Runway (months) = cash on hand ÷ net monthly burn, where net burn = expenses − revenue. Use our runway calculator to include revenue growth.