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Santhosh Gandhi

Venture Capital Focu... • 3m

Startups don’t die because they have bad ideas. Most die because they run out of money. And that’s exactly why understanding Burn Rate and Runway is crucial. Burn Rate is the amount of money a startup spends every month to operate salaries, rent, marketing, product development, and everything. Runway is how many months they can survive with the cash they have. For example, if a startup has ₹1 crore in the bank and spends ₹10 lakhs a month, its runway is 10 months. If they don’t raise more money or start making revenue before that, they shut down. That’s why founders are obsessed with burn rate. If the burn rate is too high, the runway shrinks fast. Smart founders manage their runway carefully. Some raise money before they need it. Some reduce unnecessary expenses. Some focus on making revenue early so they aren’t dependent on investors. Because in the end, if your runway runs out before your startup takes off, nothing else matters. #Venturecapital #Burnrate #runway

2 Replies

Replies (2)

Anonymous 2

Hey I am on Medial • 3m

Welcome to Startup Darwinism 101. Everyone talks about innovation, but 90% of survival is financial mathematics. I've watched founders with absolute rock-star ideas crash and burn because they thought venture capital was an infinite money hack.

Anonymous 1

Hey I am on Medial • 3m

Spot on, but let me add some real-world perspective. I've seen brilliant products die not because they weren't innovative, but because founders treated money like Monopoly cash. There's this toxic startup culture that glorifies spending - fancy offices, unnecessary hires, over-the-top marketing. True survival isn't about how much money you raise, it's about how strategically you spend what you have. I've bootstrapped two companies, and the discipline of watching every rupee is what separates survivors from casualties.

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Vikas Acharya
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Word to Know: Burn Rate - How fast a startup spends money. Lower rates = longer runway.

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Burn Rate vs Runway – Know Before You Run Out It’s easy to raise funding and feel like you’ve got time. But founders often forget how quickly money disappears. Burn rate and runway tell you how long your startup can actually survive. Breakdown: 1️

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Nilotpal Chauhan
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Pixelmira • 6m

Don't raise money just because you can. Raising money costs freedom more than the stakes.

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Top 10 Metrics for Startups 👉 Customer Acquisition Cost (CAC): How much does it cost you to gain a customer? 👉 Lifetime Value (LTV): The total worth of a customer over their entire relationship with your business. 👉 Burn Rate: How quickly are y

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Dr Bappa Dittya Saha

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Kids die for love Man die for financial instability Legends die for passion! Just watched the Netflix docuseries of Subrata Roy the bad boy big billionaire! Not an inspirational character! Because genius die for nothing, They live, live along!!

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Vivek Joshi

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Pivoting -When do the numbers tell you it's time to drastically re-evaluate your startup's core business model?" Financial Red Flags: Consistently Negative Unit Economics: Losing money on every sale with no clear path to profit? Your Customer Acquis

Vedant Tiwari

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Guysss... How to calculate the burn rate? like a initial startup... who's in initial stages... And a investor asking how much you need??? as our last post, a lot of you suggested some of the great ideas.... thanks for that... one of them was, burn

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Swapnil gupta

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✅ Must for Business Students 🥇10 Most Important metrics that are asked by investors. 1. Revenue Growth Rate 2. Monthly Recurring Revenue (MRR) 3. Burn Rate 4. Cash Runway 5. Gross Margin 6. Customer Acquisition Cost (CAC) 7. Customer Lifetime Val

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Ishan Singh

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hey I have a question if I have a good idea how do I raise money from VC do I have to make mvp before raising money?

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vishakha Jangir
•

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𝗕𝘂𝗿𝗻 𝗿𝗮𝘁𝗲 𝗶𝗻 𝗮 𝘀𝘁𝗮𝗿𝘁𝘂𝗽 : The amount of cash a company is losing per month. It’s essentially the negative cash flow of the business. Let's understand this with some maths : Suppose a startup has 1,000,000 Rs in the bank and spends