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Santhosh Gandhi

Venture Capital Focu... • 4m

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

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