Financial runway optimisation: a lifeline for start-ups

The financial runway is the period of time a startup or company can operate before additional capital is required, based on current cash reserves and burn rate. An extended runway is crucial for startups to have enough time for product development, market launch and reaching milestones without the pressure of immediate capital raising. Careful management and planning of the runway allows companies to make strategic decisions with greater certainty and minimise the risk of financial constraints, creating the foundation for sustainable growth and stability.