Runway

Definition

The amount of time a startup has before it runs out of money and crashes, much like an actual runway but with more crying. It's measured in months and discussed in board meetings with the same energy as a doctor delivering a terminal diagnosis.

Example Usage

"We have eighteen months of runway, which means we have eighteen months to either become profitable or practice our surprised faces for when we shut down."

Related Terms

Intermediate

prospectus

The glossy sales document that makes every investment opportunity look like the next Amazon and every university look like Hogwarts, carefully balanced between legal obligation and marketing fantasy. In startup land, it's the formal document that transforms 'three guys in a garage with an app idea' into 'disruptive technology platform poised for exponential growth.' Every prospectus contains enough disclaimers to absolve everyone of everything while somehow still convincing you to hand over your money.

🚀 Startup / VC

Advanced

protective provisions

Veto rights that let preferred shareholders block certain major decisions like selling the company or raising more money. Democracy in theory, oligarchy in practice.

🚀 Startup / VC

Beginner

minimum viable product

The most stripped-down version of your product that customers will actually use without demanding a refund—or at least that's the theory. In practice, it's whatever you can ship before running out of money.

🚀 Startup / VC

Intermediate

land grab

Aggressively pursuing market share and user growth at the expense of profitability or unit economics, betting that dominance now will create a moat later. It's monopoly thinking fueled by venture capital.

🚀 Startup / VC

Intermediate

multiple on invested capital

The total value returned to investors divided by the total amount invested, ignoring time. It's the simple, honest metric that tells you whether you made or lost money, period.

🚀 Startup / VC

Advanced

double trigger acceleration

Vesting acceleration that requires two events—typically an acquisition plus termination—before unvested shares become immediately vested. Single trigger's more reasonable younger sibling.

🚀 Startup / VC

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