# What is Runway?

Cash in the bank divided by monthly net burn, which gives the number of months a startup can keep operating. Investors check it to see how soon the company must raise again or reach profit.

## In real work

With $1.8 million in the bank and a net burn of $150,000 a month, the founders told investors they had 12 months of runway.

## Related terms

- [SAFE](https://prompthausapp.com/learn/safe.md)
- [Valuation Cap](https://prompthausapp.com/learn/valuation-cap.md)
- [Dilution](https://prompthausapp.com/learn/dilution.md)
- [Pro Rata](https://prompthausapp.com/learn/pro-rata.md)
- [Limited Partner](https://prompthausapp.com/learn/limited-partner.md)

## How is this different from Googling it?

Google gives a definition. Prompthaus pairs each term with how it shows up in standups, PRs, prompts, and design reviews. Then it quizzes you until the word sticks. One term a day on iPhone.

- Category: Venture
- HTML: https://prompthausapp.com/learn/runway
- App Store: https://apps.apple.com/us/app/prompthaus-ai-vocabulary/id6776314407