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Runway

Months of operating cash a company has before running out.

Reviewed by Christian Espinosa, Founder, Blue Goat CyberLast reviewed May 5, 2026

Definition

Runway is cash on hand divided by net monthly burn. It tells founders and boards how long the company can operate before needing more capital or reaching profitability.

What this means in practice

MedTech investors typically expect 18–24 months of runway after a round to reach the next value-creating milestone (e.g., trial readout, regulatory clearance). Burning through a round in 12 months without a milestone is a red flag.

Common pitfalls

•Confusing gross burn with net burn; revenue-stage companies should track both.
•Not stress-testing runway against trial enrollment delays or FDA RTA letters.

Primary references

3 sources

Link health: 2 verified 1 needs review· last checked 2026-05-09

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On this term

Category: Investment & Finance
Sources: 3
Updated: 5/5/2026

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Learn in 60 seconds

Months of operating cash a company has before running out.

·MedTech investors typically expect 18–24 months of runway after a round to reach the next value-creating milestone (e.g., trial readout, regulatory clearance).
·Burning through a round in 12 months without a milestone is a red flag.
·It tells founders and boards how long the company can operate before needing more capital or reaching profitability.

Remember this

Watch out: Confusing gross burn with net burn; revenue-stage companies should track both.

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