Runway Extension
Content
Definition
Runway Extension refers to actions taken by a startup to lengthen the amount of time before additional funding is needed, often through cost-cutting or seeking additional investments.
Usage and Context
Runway extension includes measures like cutting costs to increase the time before more funding is needed.
Frequently asked questions
- What is a SAFE (Simple Agreement for Future Equity)? A SAFE is a contract where investors provide money to a startup in exchange for rights to future equity if certain events happen, like a new funding round.
- What does runway mean for startup? For a startup, runway means how long the company can operate with its current cash balance before needing more funding.
- What is runway time in startup? Runway time refers to the period a startup has before it runs out of cash, based on its current expenses and cash reserves.
Benefits
Runway extension involves actions to increase the time before a startup needs additional funding, like cost-cutting.
Conclusion
Runway extension lengthens the time before a startup needs new funding, usually by reducing expenses.
