Cap Table vs Runway
Cap Table (Capitalization Table) and Runway (Months of Survival) both come up in business conversations and get confused. Here's the plain-English difference, side by side, so you can use each one with confidence.
The key difference: Cap Table refers to capitalization table, while Runway refers to months of survival — they describe different things even when they show up in the same sentence.
Cap Table — Capitalization Table
Who owns what and how much. A messy cap table scares investors.
Runway — Months of Survival
Months of survival at current burn rate. Growth without runway = death.
When to use Cap Table
Reach for "Cap Table" when the conversation is specifically about capitalization table. Who owns what and how much. A messy cap table scares investors.
When to use Runway
Reach for "Runway" when the conversation is specifically about months of survival. Months of survival at current burn rate. Growth without runway = death.
FAQs
What is the difference between Cap Table and Runway?
Cap Table stands for Capitalization Table — Who owns what and how much. A messy cap table scares investors. Runway stands for Months of Survival — Months of survival at current burn rate. Growth without runway = death.
Are Cap Table and Runway the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. Cap Table = Capitalization Table. Runway = Months of Survival.
When should I use Cap Table vs Runway?
Use Cap Table when you're specifically referring to capitalization table. Use Runway when the topic is months of survival.