[
  {
    "rogueId": "finance.runway_months",
    "slug": "runway_months",
    "domain": "finance",
    "defaultLabel": "Runway (Months)",
    "description": "Estimated number of months the company can operate at the current net burn before unrestricted cash reaches zero, holding everything else constant. The single most consequential survival input for venture-backed companies — it sets the urgency of every fundraising, hiring, and cost decision. Common pitfall: runway is often quoted off `finance.total_cash_in_bank` and a single-month spot-burn instead of operationally-available cash and a 3-month-trailing burn — the result is a runway that looks 2–4 months longer than it actually is when working capital tightens. Boards should ask which cash and which burn went into the calculation.",
    "fieldType": "number",
    "unit": "months",
    "maturity": "general",
    "suggestedForStages": [
      "preSeed",
      "seed",
      "seriesA",
      "seriesB"
    ],
    "defaultOwningFunctions": [
      "Finance"
    ],
    "stageRelevance": {
      "preSeed": "core",
      "seed": "core",
      "seriesA": "core",
      "seriesB": "recommended"
    },
    "definitionSource": {
      "tier": "published",
      "sourceName": "KBCM/Sapphire SaaS Survey 2024 (15th Annual)",
      "sourceUrl": "https://www.cfodesk.co.il/wp-content/uploads/2024/10/2024_kbcm_sapphire_saas_survey.pdf",
      "sectionRef": "Months of Cash (Runway) by ARR Cohort",
      "publicationDate": "2024-09-01",
      "attributionNotice": null
    },
    "formula": "runway_months = max(finance.operationally_available_cash, finance.total_unrestricted_cash) / finance.net_burn_rate. When net burn is negative (cash-flow positive), runway is unbounded — render as ∞ rather than negative. Most boards use a 3-month-trailing-average net burn for the denominator to dampen single-month noise.",
    "whyItMatters": "Drives the timing of every fundraise, hire, and budget cut — and is the number investors lead with in diligence. Crossing under stage-typical thresholds usually triggers a board-level cost or fundraising conversation.",
    "interpretationGuidance": "Stage-typical industry context (per the 2024 KeyBanc Capital Markets & Sapphire Ventures SaaS Survey §runway / month-of-cash discussion): private SaaS companies with $10M–$50M year-end ARR median ~25 months of cash; those <$10M or >$50M ARR median ~18 months. Practitioner heuristics (industry folk-wisdom, not citation-grade): under 6 months is critical (immediate fundraise or cost action); 12–18 months is healthy for active fundraising; 24+ months gives optionality. Recalculate any time burn changes materially or a tranche closes.",
    "relatedKpiIds": [
      "finance.total_cash_in_bank",
      "finance.total_unrestricted_cash",
      "finance.operationally_available_cash",
      "finance.net_burn_rate",
      "finance.burn_rate_scenarios",
      "fundraising.target_raise"
    ]
  }
]