Write burn rate & runway paragraph
AI creates clear explanation of your burn rate, runway, and cash position for investors or board.
Write burn rate & runway paragraph
River's Burn Rate & Runway Writer creates clear financial explanations for stakeholders. You provide burn details and cash position, and the AI writes a focused paragraph stating monthly burn rate clearly, showing runway calculation (months until out of cash), breaking down major expense categories, explaining path to profitability or next raise timing, and demonstrating financial discipline and planning. Whether for investor updates, board meetings, or fundraising materials, clear burn and runway communication builds confidence.
Unlike vague financial handwaving, we create specific, transparent burn explanations. The AI uses exact numbers (not ranges or vague estimates), shows the math clearly (burn rate × months = runway), explains major cost drivers (personnel, infrastructure, marketing), demonstrates you understand your financials, and maintains the transparent, disciplined tone that makes investors trust your capital management. You get paragraphs that show financial responsibility and planning.
This tool is perfect for fundraising founders explaining cash position, anyone writing monthly investor updates, CEOs preparing board materials, or founders whose investors ask 'how long until you run out of money.' If you know your burn but struggle to present it clearly and confidently, this tool helps. Use it in monthly updates, fundraising materials, or any time stakeholders need to understand your cash position.
What Makes Burn/Runway Explanations Build Trust
Effective burn explanations are specific and forward-looking. The best paragraphs state exact monthly burn (not vague ranges), show clear runway calculation, break down major expense categories, explain how burn changes with growth or hiring, and position next fundraise or path to profitability. Weak explanations stay vague ('low burn'), hide runway concerns, or don't explain what drives costs. Investors need to know: how much do you spend, how long can you operate, what's the plan? Answer clearly.
Strategic runway positioning shows planning and discipline. 12 months runway minimum is required. 18+ months is comfortable. Under 12 months and investors worry you'll be fundraising constantly. Show you have buffer. If runway is short, explain specific plan (fundraising soon, cutting costs, or path to revenue). Long runway shows discipline. Short runway without plan shows poor planning. Always position your burn and runway in context of your milestones and next steps.
What You Get
Clear 2-3 sentence burn and runway paragraph
Specific monthly burn rate stated
Runway calculation shown (months remaining)
Major expense breakdown included
Path to profitability or next raise timing
How It Works
- 1Provide financialsShare burn rate, cash, runway, expense breakdown, plans (50-200 words)
- 2AI writes paragraphOur AI creates clear burn/runway explanation in 30 seconds
- 3Add to updatesInclude in investor updates, board materials, or pitch decks
- 4Update monthlyRefresh with current numbers each reporting period
Frequently Asked Questions
How much runway should I have and what do I say if it's low?
18+ months is ideal. 12-18 months is acceptable. Under 12 months requires explanation. If runway is under 12 months, you MUST explain your plan: 'Runway is 9 months. We're raising $2M seed (conversations started, expecting to close Q1)' or 'Runway is 10 months. Reducing burn from $50K to $35K/month starting next month by pausing non-essential hires.' Never present short runway without a plan. Investors need to know you won't run out of cash unexpectedly. If runway is comfortable (18+), emphasize it: 'Runway is 22 months, giving us ample buffer to reach profitability.'
Should I include revenue in burn calculation or show gross burn?
Show net burn (expenses minus revenue) for operating companies with revenue. Show gross burn if pre-revenue. Format: 'Monthly burn: $65K net ($80K expenses, $15K revenue)' or 'Monthly burn: $45K gross (pre-revenue).' Net burn shows your actual cash consumption. But also show the components so investors see revenue trajectory. If you're approaching break-even, emphasize it: 'Burn: $20K net and declining as revenue scales ($80K expenses, $60K revenue, growing toward break-even).' Show the full picture.
What level of expense detail should I include?
High-level categories only in paragraph. Detailed breakdown in appendix or data room. Format: 'Burn: $65K/month ($40K personnel, $15K infrastructure, $10K other).' That's 3 categories, enough to show you're not wasteful but not overwhelming detail. Investors want to see: (1) most spend is on team (good), (2) infrastructure is reasonable, (3) you're not hemorrhaging on unnecessary costs. Save line-item budget for follow-up conversations. Paragraph should be scannable, not a full P&L.
How do I explain burn increasing as we scale?
Frame it as planned, milestone-driven investment. Format: 'Burn: $65K/month currently, increasing to $85K when we hire 2 engineers next quarter (tied to revenue milestone of $100K MRR).' This shows: (1) burn increase is planned, not out of control, (2) tied to specific hires/milestones, (3) you're managing it deliberately. Growing companies should have increasing burn (you're scaling). But show it's strategic, not wasteful. Investors expect burn to increase with headcount. Just show you're planning it carefully.
Should I mention fundraising plans in burn/runway paragraph?
Yes, if you're fundraising within the runway period. Format: 'Runway: 15 months through March 2026. Planning to raise $5M Series A in Q1 2025 when we hit $1M ARR.' This shows: (1) you have comfortable runway, (2) you're thinking ahead, (3) you won't be desperate/rushed. Don't mention fundraising if you have 20+ months runway and aren't planning to raise soon. But if runway is under 18 months or you're actively fundraising, mention your plan. Investors appreciate forward planning, not surprises.
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