Startup Runway Month-by-Month Burn Calculator 2027
Calculate startup runway 2027 with burn multiple, default alive vs default dead status, and zero-cash date. Critical for fundraise timing in 2027 VC market.
Default Alive vs Default Dead
Paul Graham concept. Default alive: revenue + growth will cover burn before cash runs out (no raise needed). Default dead: even with growth, you can't make it. 2026-2027 VC market: be default alive or close to it.
Burn Multiple = Capital Efficiency
Burn / Net New ARR. <1 = exceptional. 1-1.5 = healthy. 1.5-2 = okay. >2 = warning. Best-in-class SaaS (post-product-market-fit) consistently <1.5.
18-Month Rule
Raise enough for 18-24 months operations. Past 18 the next round panic-pricing kicks in. Plan to start fundraise process when ~9-12 months runway left.
Static vs Growth-Adjusted
Static = cash / monthly burn (worst case). Growth-adjusted = factors in growing revenue offsetting burn over time. Always compute both. Show investors growth-adjusted, plan with static.
Source: paulgraham.com 'Default Alive or Default Dead', sequoia.com survival guides. Last updated: May 2026.