What is runway?

Runway is a metric that indicates how long (usually in months) a company can continue operating at its current expense level before running out of money. In the context of monetization and product management, runway helps understand how much time is available to achieve profitability or attract new investments.

Example: if a startup has $500,000 in the bank and monthly expenses of $50,000, then the runway is 10 months. This means that without changes, the company can operate for 10 months.