Funding & Finance — SaaS glossary

Startup finance essentials - runway, burn rate, fundraising, and capital efficiency.

Burn Rate

The rate at which a startup spends cash reserves before reaching profitability.

Runway

The number of months a startup can operate before running out of cash at the current burn rate.

Bootstrapping

Building and growing a startup using personal funds and revenue, without external investment.

MVP (Minimum Viable Product)

The simplest version of your product that delivers core value and can be tested with real users.

TAM (Total Addressable Market)

The total revenue opportunity available if your product captured 100% of the market.

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