#startup
4 articles
The Real Startup Runway Question Isn't 'When Do I Run Out' — It's Which Comes First
We ran $200K cash, $25K/month burn, and $5K MRR growing 12%/month through a month-by-month simulator — the revenue ramp reaches breakeven before the static cash-divided-by-burn estimate would suggest the money runs out.
Stop Splitting Co-Founder Equity 50/50 by Default — Use a Formula You Can Both See
We ran a three-founder scenario (idea originator, technical co-founder, part-time investor-operator) through a transparent weighted formula — idea, time, capital, and experience — and the split moved meaningfully away from an even three-way default.
Why '20 Months of Runway' Actually Means 11-12 Months in Practice
The simple runway formula (cash ÷ burn) gives an optimistic answer because both inputs change. We modeled the typical 12-month evolution: hires you'll add, infrastructure that scales with users, the legal bills you didn't budget. The 20-month headline becomes 11-12 in real conditions.
Runway 101: the Formula, the Fundraising-Trap Correction, the One Number That Matters
Runway = cash ÷ net burn. Easy to compute, easy to get wrong because both inputs change. The non-obvious correction: start fundraising when you have 9 months left, not 4. Here's why.