Definition
Actions taken to make existing capital last longer, typically through cost-cutting, down-rounds, or revenue generation—whatever keeps you alive until the next funding round. Financial life support for startups.
Example Usage
After the market crashed, we did a runway extension by cutting 30% of staff and renegotiating our office lease—fun times.
Origin
Aviation metaphor adapted to startup finance, common terminology since 2000s
Fun Fact
Runway extensions during market downturns often involve 'internal rounds' where existing investors throw in just enough money to avoid a down round.
Source: Startup financial management terminology
Related Terms
Translate This Term
See “runway extension” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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