Biology of Business

Finance

Runway

By Alex Denne

The amount of time a company can continue operating before running out of cash, given current burn rate and reserves. Usually expressed in months.

Used in the Books

This term appears in 24 chapters:

Foundations Introduction

"...rs of industrial capitalism and we're still figuring it out. Consider your burn rate. Every venture capitalist obsesses over it. "How many months of runway do you have?" they ask, as if they invented the question. But every organism operates on runway. A hummingbird has approximately four hours between m..."

Foundations Metabolism and Burn Rate

"You're the organism that survives winter. You can't unsee this now. Every decision you make about headcount, runway, growth rate, and efficiency is a metabolic decision. The question is whether you're making it consciously, with biological principles in mind, or un..."

Resource Dynamics Hibernation Reserve Strategy

"The bear didn't have enough fuel left for the restart. It had entered winter with 90% of the reserves needed. In business terms, it had sufficient runway to survive but insufficient capital to restart operations. :::share{variant="teal" label="Emergence Insight"} Hibernation doesn't end when you wake ..."

Resource Dynamics Foraging Optimization

"...isky patch (50% chance of 200 calories) delivers 50% survival. 50% > 0%. The math is brutal and clear. Business parallel: Startups with 3 months runway make risky bets (pivot, launch unfinished products, aggressive customer acquisition). Startups with 24 months runway optimize safely (test, measure, ..."

Resource Dynamics Energy Budgets

"...Decision Algorithm: When to Execute Mast Year Allocation** ``` IF (2+ trigger indicators flip to Mast Year Signal) AND (Capital reserves ≥ 12 months runway for mast year burn) AND (Team capacity can scale 2-3× with hiring) THEN → Execute Mast Year Allocation (80% to opportunity, 10% growth, 10% survival)..."

And 19 more chapters...

Biological Context

Runway parallels stored energy reserves divided by metabolic rate—how long an organism can survive without feeding. Like animals preparing for hibernation or migration, companies must manage runway to survive resource-scarce periods. Runway determines how long you have to find food (revenue) or reach safety (profitability).

Business Application

Standard advice: maintain 12-18 months runway; raise when you have 6+ months left. Runway determines negotiating leverage, strategic flexibility, and ability to wait for the right opportunities.

Related Terms

Tags

financestartupssurvival