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Santhosh Gandhi
Venture Capital Focu...ย โขย 26d
Startups donโt die because they have bad ideas. Most die because they run out of money. And thatโs 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 โน1 crore in the bank and spends โน10 lakhs a month, its runway is 10 months. If they donโt raise more money or start making revenue before that, they shut down. Thatโs 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 arenโt dependent on investors. Because in the end, if your runway runs out before your startup takes off, nothing else matters. #Venturecapital #Burnrate #runway
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