The most critical resource for a Startup or a Scaleup Founder is time. A Startup Founder needs to get traction as quickly as possible using a limited resources as possible. Runway measures this time.
Time is the most critical resource for a Startup or a Scaleup Founder. You need to get traction as quickly as possible. Runway measures this time.
Runway is the number of days or months Cash runs out. Runway takes into account the cash position and all predicted incoming and outgoing payments, salaries, taxes and the other expenses needed for running the business.
The faster your business decides to grow, the more challenging the Runway and cash prediction will be. You have to invest upfront in people, sales, and marketing to get customers when payments fall over a delayed period of time. Runway does not mean hours of excel training. Today, machine learning can do the hard work for you, in seconds.
The harder the growth, the more crucial is get confidence about Runway. riskrate gives confidence about Runway 10x faster.
Instantly get your Runway prediction here
riskrate can help you easily to get started. You can instantly get a Runway prediction based on your data. See your Runway here Early-stage Startup Founders typically track cash runway far more often than more mature businesses, as top line is not instantly running when they build the product and company. This is important to keep in mind - if you spend money to create and grow a great product without knowledge of Runway, your business can fail even before you’ve even gotten money from the sale to the bank account.
Runway is a clear indicator that whether or not, your business is not overspending. The runway can be extended, for example, by changing the sales billing model or by cutting costs, which reduces the Burn Rate.
Why Runway is important?
Your Runway can be a clear indicator of whether or not your business is overspending.
A short runway, without any near-term Cash, means you should consider seeking additional funding to keep your business running, or cutting costs to reduce the amount of cash you are spending.
By now, you understand why cash runway is critical information when you’re tracking Cash.
Having an up-to-date, accurate Cash prediction can automatically tell you exactly how many days or months you’ve got left, allowing you to make real-time decisions to reach out to investors or cut corners to decrease burn rate and increase runway. How to extend Runway?
A Start-up Founder typically raises Runway for the next 12 to 18 months in a funding round. However, the funding round may take longer than expected and therefore a response is important. The runway can be extended, for example, by changing the sales billing model or by cutting costs, which reduces the Burn rate.
Adjust Invoicing Could you change invoicing model and invoice in advance 6 months or even 12 months?
Could you start offering consulting services based on an hourly fees?
Adjust new Hires to Subcontracting
Instead of hiring, could you get more resources based on a subcontracting?
Adjust Fixed costs
Any change to adjust renting and move to the smaller office for a while?
As a Founder, you might have already adjusted your own salaries.
riskrate helps you to get started without a second of manual work.
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Confidence about Runway is a lifeline and it is important that it is calculated correctly. In the cash forecast, it is important to pay attention that nothing falls through the cracks, all invoices and data is included and also, that the data is up-to-date.
riskrate automatically gives you superior Runway forecast based on machine learning. On top of effortless Runway prediction, you can super-easily plan longer, your own 12 to 18 month cash forecast. It's good to keep in mind, that you can to connect all bank accounts to riskrate Runway forecast.
riskrate is done to predict Runway 10 x faster.