Cash Runway
Cash Runway is a critical SaaS metric that indicates how many months a company can continue operating at its current burn rate before depleting its cash reserves.
By monitoring Cash Runway, SaaS companies can make informed decisions about cost management, growth strategies, and fundraising timelines. A longer cash runway suggests financial stability, while a shorter runway signals the need for adjustments, such as reducing expenses or securing additional funding. This metric is particularly valuable for startups and scaling businesses that rely on external investment to sustain operations and growth.
Cash Runway Calculation
Net Burn
To understand the Net Burn calculation, navigate to📄 Net Burn
Cash Balance
The Cash Balance is determined by the total Cash held in each account at the end of each month. For purposes of cash runway, Rillet will use the actual bank balance, which could be different than the GL balance due to bank reconciling adjustments.
FAQ
How does Rillet handle funding cash inflows with respect to Net Burn?
Rillet will natively exclude large inflows to any equity accounts as part of Net Burn. This will only impact the calculation in the Cash Balance.
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