Costs & Fundraising
How do I calculate runway and burn rate in a simple way?
Answer:
Burn rate refers to how much cash you spend each month (after revenue). Runway is calculated as cash in the bank divided by monthly burn. Keep it simple: include payroll, contractors, cloud services, tools, and marketing or sales expenses. Update this figure every month. If burn is increasing, model best-case and worst-case scenarios so you know when to cut costs or seek additional funding.
Related Costs & Fundraising Questions And Answers
- How can I estimate what my MVP will cost to build without being technical?
- How can we keep cloud and infrastructure costs under control as we grow?
- How can we prepare our engineering and product setup for investor due diligence?
- What’s a realistic monthly budget for a startup dev team building an MVP?
- Should I raise money before building the MVP or bootstrap first?
- How do I decide between hiring employees vs contractors when runway is tight?
- What costs do founders usually forget when planning a fundraising runway?
- What metrics do investors expect from a SaaS startup before a seed round?
- How do I price my SaaS if we’re still early and don’t know the final scope?
- What is staff augmentation cost vs hiring in-house, and how do I compare properly?
- How much equity should I give a technical co-founder vs hiring a CTO later?
- What should a startup prepare for technical due diligence in fundraising?
- How do I avoid over-hiring engineers after raising a seed round?
- What’s a sensible funding ask if we need to build and sell for the next 12–18 months?
- How do I show investors that our development cost is efficient and controlled?
- What’s the best way to negotiate developer rates with remote teams without hurting quality?
- How do we avoid building features that waste budget before product-market fit?
Ready to Hire?
Hire trusted devs from Ukraine & Europe in 48h
Skip the hiring headaches and get trusted developers who deliver results. Cortance has helped startups scale to million-dollar success stories.
Find a developer
We're Here to Help
Looking for consultation? Can't find the perfect match? Let's connect!
Drop me a line with your requirements, or let's lock in a call to find the right expert for your project.
