Glossary
Burn Rate
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Related terms
Glossarybeginner
Runway
Runway is the number of months your business can operate before running out of cash, calculated as cash on hand divided by monthly burn rate.
Glossarybeginner
Non-Dilutive Funding
Non-dilutive funding is capital you receive without giving up equity. Grants, cloud credits, revenue-based financing, and competition prizes all qualify.
Glossarybeginner
501(c)(3) and fiscal sponsorship
A 501(c)(3) is a U.S. tax-exempt non-profit; a fiscal sponsor is an existing 501(c)(3) that lets a project receive tax-deductible donations and grants under its umbrella before the project incorporates on its own.
Glossarybeginner
Accelerator
An accelerator is a fixed-term, cohort-based program that invests a small amount in early-stage startups in exchange for equity, then runs intensive mentorship that ends with a demo day.