What is What to do when runway is short?
Nexa Consultancy | Startup & Finance Glossary
When runway is short (e.g., less than 6 months), founders have limited options: drastically cut costs (reduce burn), raise a bridge round (from existing investors), or attempt a quick acquisition. The key is to act decisively and not wait until the last minute.
Startup Example: A startup has 3 months of runway left. The founder immediately cuts all non-essential marketing spend and asks the team to take a temporary pay cut, while simultaneously negotiating a small bridge loan from their lead seed investor to extend the runway by another 6 months.
Our burn management guides offer strategies for this scenario.