Runway
How long current cash lasts
The number of months until cash-out at your current burn, assuming no new funding.
Glossary
Plain-English startup finance definitions.
A quick glossary of finance terms used across runway planning, fundraising, performance reporting, and fractional CFO support.
Core Terms
Definitions founders and finance leaders use most.
Burn Rate
Monthly net cash outflow
The net cash your business consumes each month after revenue and operating costs.
ARR
Annual recurring revenue
Recurring subscription revenue normalized to a yearly figure.
MRR
Monthly recurring revenue
Recurring subscription revenue recognized on a monthly basis.
Gross Margin
Revenue minus direct service cost
The percentage of revenue left after delivery costs before overheads.
CAC
Customer acquisition cost
The average sales and marketing cost required to acquire one new customer.
LTV
Lifetime value of a customer
The expected total gross profit from a customer over the full relationship.
CAC Payback
Time to recover acquisition spend
How many months of gross profit are needed to recover customer acquisition cost.
FP&A
Financial planning and analysis
The planning process used for budgeting, forecasting, variance analysis, and decisions.
Data Room
Investor diligence repository
A structured set of documents used during fundraising due diligence.
Working Capital
Short-term operating liquidity
Current assets minus current liabilities, indicating near-term liquidity headroom.
Venture Debt
Debt alongside equity financing
Loan financing used by growth companies to extend runway with less dilution than pure equity.
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