IFO4
Loading...The number of months an organisation can sustain its current operating cost structure given its cash position and projected burn rate, before requiring additional financing or reaching cash flow positive. Runway is the federation's primary near-term liquidity metric for venture-backed organisations. It is computed as ending cash divided by trailing-three-month average net burn, with adjustments for known one-time items disclosed. Runway falling below twelve months without a credible financing plan is a watchlist condition under MEV-Annex:4.1.
An aviation metaphor adopted by venture capital practice in the late twentieth century; the image of a fixed strip of pavement before takeoff is direct.
Federation members publish runway monthly with the underlying cash position and burn calculation. Runway below twelve months triggers an automatic federation watchlist entry. Runway extensions through cost actions are footnoted with the actions taken under MEV-Annex:4.1.
@misc{ifo4_glossary_runway,
title = {{Runway}},
author = {{IFO4 Federation Editorial Board}},
howpublished = {{IFO4 Federation Glossary, slug \texttt{runway}}},
year = {2026},
url = {https://ifo4.org/glossary/runway},
note = {Category: Capital; key: Runway}
}Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.