Joining a Startup Is a Bet on Runway
A startup offer usually comes with a mission, a team you like and some equity. What it rarely comes with is a clear answer to the most practical question: how long can this company pay salaries if things go slower than planned?
You are allowed to ask. Founders who are confident in their numbers usually welcome the question, because it shows you think like an owner. Vague answers are information too.
9 Questions to Ask Before You Accept
• 1. How many months of runway do you have at the current burn rate?
• 2. Does that runway figure include the hires planned this year, including mine?
• 3. What is monthly net burn today, and how has it changed in the last six months?
• 4. How much revenue do you have, and is it recurring?
• 5. When do you plan to raise next, and what milestone do you need to hit first?
• 6. What happens if the next round takes six months longer than planned?
• 7. Who are the current investors, and have they said they will support the next round?
• 8. What would make the company default alive — profitable before cash runs out?
• 9. What does success in my role look like in the first six months, and how does it move those numbers?
How to Read the Answers
A common rule of thumb: startups aim for 18–24 months of runway right after a round and switch into fundraising mode when runway drops below about 12 months, because preparing and closing a round can take 6–9 months. So a company with 18 months of runway has room to work; one with 8 months is likely fundraising now, which is fine as long as they say so.
Check the arithmetic yourself. If a company says it has $2,400,000 in the bank and burns $150,000 a month, runway is 16 months. If your hire and two others add $45,000 to monthly burn, runway drops to about 12 months. Founders sometimes quote runway before planned hires.
| Reassuring | Worth digging into | |
|---|---|---|
| Runway | A specific number, including planned hires | "We're fine" with no number |
| Burn trend | Stable or falling relative to revenue | Rising fast with flat revenue |
| Next round | A clear milestone and timeline | "Investors are very interested" only |
| Plan B | Named cost levers if fundraising slips | No plan if the round is late |
Putting Equity in Context
Equity is part of the offer, but its value depends on the company surviving long enough to grow. Ask about the vesting schedule, how many shares are outstanding (so you can work out your percentage) and how future rounds may dilute that percentage. Terms differ by country and company, so read the actual documents and get independent advice before signing.
Our guides to vesting schedules and dilution explain the mechanics; this article is about the step before that — making sure the company has the runway for the equity to matter.
See the Founder's Side of the Table
Founder Runway puts you in the founder's chair for a 20-turn run, where every hire raises burn and every fundraising decision affects runway, investor trust and cap table health. Playing a run is a fast way to understand what a founder is weighing when they make you an offer.
Frequently asked questions
What should I ask a startup before joining?
Ask about runway at the current burn, whether it includes planned hires, the burn trend, revenue, the next funding milestone, what happens if fundraising is delayed, investor support and how your role moves those numbers.
How much runway should a startup have when I join?
There is no fixed rule, but startups commonly aim for 18–24 months right after a round and start fundraising when runway drops below about 12 months. A company with more than a year has room to work; one with less is likely fundraising soon, which is fine if they are open about it.
Is it rude to ask a startup about its runway?
No. Founders who know their numbers usually welcome the question. A specific, honest answer is a good sign; a vague one is worth following up.
How should I evaluate startup equity in an offer?
Ask about the vesting schedule, total shares outstanding and expected dilution from future rounds. Terms vary by country and company, so read the documents and get independent advice before signing.
Test this decision in the game.
Apply the same assumption across one run and see which metric weakened three turns later.