How long is the runway?
24 months
Theo's forecast: Shard Garden has US$1,800,000, spends US$300,000 a month and earns US$200,000: 18 months of runway. The board asks for at least 24, without cutting a team.
Try it
How long is the runway?
Pick the plan that reaches 24 months.
Quick check
Theo saves US$25,000 a month. Why does that add 6 months?
- Burn drops to 75,000, and 1,800,000 ÷ 75,000 = 24
- The bank adds interest
- It adds 25,000 to the bank
Show the answer
Burn drops to 75,000, and 1,800,000 ÷ 75,000 = 24
A smaller burn makes the same money last longer.
Earning counts too
Earning US$25,000 more a month lowers the burn as much as spending less. But earning is a forecast, while saving is in the studio's hands.
Do the math
1bank 1,800,0002burn/month 60,000
How long is the runway now?
- 30 months
- 20 months
- 3 months
Show the answer
30 months
1,800,000 ÷ 60,000 = 30.
Check it monthly
Runway moves every month as spending and income change. Shard Garden works it out again with each forecast, and the board sees both.
Quick check
Runway only needs working out once, when the studio raises money.
- True
- False
Show the answer
False
Spending and income change every month, so the runway does too.
On the studio board
The studio adds a decision to the board:
Runway, and whether the studio is default alive, open every board meeting. Fundraising starts with 12 months left.
Bolt says: Next: tax credits for games.
Fact-checked 12 October 2026
- Paul Graham: Default Alive or Default Dead? (October 2015) paulgraham.com
- British Business Bank: How to create a cash flow forecast in 4 steps british-business-bank.co.uk