Category season file
Cash, burn, and survival reflexes.
posts in this decision room
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A plain-language startup glossary: runway, burn rate, burn multiple, SAFE, dilution, PMF, ARR, CAC and 35+ terms defined in one or two citable sentences each.
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Burn multiple explained: the formula (net burn ÷ net new ARR), David Sacks' benchmark scale, worked examples, and practical ways to improve capital efficiency.
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How to calculate cash burn straight from your bank balance: the period formula, 3-month averages, handling one-off expenses, and how cash burn drives runway.
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The short answer is 18–24 months after a round — but the right number depends on stage, market, and your next milestone. Benchmarks and alarm thresholds explained.
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Learn how to calculate runway step by step: the formula, worked examples, healthy benchmarks, and a free runway calculator.
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How to calculate burn rate step by step: the gross vs net burn formula, worked examples, and the benchmarks that show whether your burn is healthy.
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Read the 7 early-stage decisions that look harmless but drain cash, team focus, and investor trust at the same time.
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Weigh bootstrap against seed funding by reading speed, control, and the cost of learning in one table.
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Default alive means your current growth and burn reach profitability before cash runs out. Learn the formula, sector nuances, and the mistake founders make.