How to Extend Your Runway

The presentation offers startups comprehensive strategies for conserving cash and extending their financial runway during periods of heightened funding costs. It covers fundamental concepts such as calculating financial runway, differentiating between net cash and gross cash, and comprehending monthly burn rates. Additionally, it provides tactical insights on extending the runway, including securing venture debt lines as an auxiliary financial resource and optimizing the disparity between EBIT and free cash flow.

Why is relevant?

Runway Management: Crucial for assessing how long a startup can operate before needing additional funding. Navigating Uncertainty: Offers strategies for startups to remain agile amidst market fluctuations. Component Breakdown: Helps in understanding fund allocation and efficiency. Extension Tactics: Provides methods to prolong operational viability and meet growth targets.
How to Extend Your Runway, investment firm website screenshot
Author
Ravi Gupta & Sonya Huang
Publication date
May 1st, 2022
Difficulty
Intermediate
Keywords
  • Startup funding
  • cash conservation
  • financial planning
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