How much runway should a pre-seed SaaS have?
A pre-seed SaaS should aim for at least 18-24 months of runway after raising. Under 12 months is risky — closing a round takes around six months, so you would be fundraising again almost immediately. Runway = cash ÷ monthly net burn; extend it by cutting burn or growing revenue before you raise.
What runway actually is
Runway is how many months you can operate before cash hits zero, at your current net burn. If you have €120k and burn €10k a month, you have roughly 12 months — though growing revenue extends it and growing costs shorten it.
How much you need, and why
The common target is 18-24 months post-raise. The reason is timing: a round takes about six months to close, and you want enough time to hit the milestones that justify the next round before you start raising it. Eighteen months gives you roughly a year of building plus six months of fundraising.
Under 12 months is a warning sign — you would be back in fundraising mode almost immediately, from a weak position.
The "raising takes six months" trap
Founders routinely underestimate how long raising takes. If your runway is shorter than the time to close a round, you are effectively already late. The rule of thumb: start raising when you have about six months of runway left, not when you are nearly out.
How to extend runway
Two real levers before raising: cut burn (the fastest, fully in your control) and grow revenue (slower but improves the business and your valuation). Raising more is the third lever, but it costs equity. Model the trade-offs before deciding.
FAQ
When should I start fundraising?
A common rule is to start when you have about six months of runway left, since closing a round typically takes that long. Waiting until you are nearly out forces a weak negotiating position.
Does revenue count toward runway?
Yes — runway is based on net burn, which is costs minus gross profit. Growing revenue reduces net burn and extends runway, sometimes to the point of break-even.
Check your own numbers.
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Last updated: June 25, 2026. For information only — not financial advice.