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What Is Venture Debt? Extending Startup Runway Without Giving Up Equity
Venture debt buys a startup extra runway without pricing a new round. Here's how it works, what it really costs in warrants, and when it backfires.
Category season file
Cash, burn, and survival reflexes.
posts in this decision room
What did this move burn?
Venture debt buys a startup extra runway without pricing a new round. Here's how it works, what it really costs in warrants, and when it backfires.
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The Rule of 40 says a SaaS startup's growth rate plus profit margin should clear 40%. Here's the formula, benchmark scale, and worked examples.
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Why do startups fail? Real data says it's rarely just running out of cash — no market need, bad timing, and founder burnout usually show up first. Here are the 9 failure modes, what the numbers actually say, and the signals that show up before the ending does.
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A bridge round buys a startup extra runway between priced rounds. Learn how SAFE and convertible note bridges work, and what they cost in dilution.
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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.