Runway vs SAFE
Runway (Months of Survival) and SAFE (Simple Agreement for Future Equity) 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: Runway refers to months of survival, while SAFE refers to simple agreement for future equity — they describe different things even when they show up in the same sentence.
Runway — Months of Survival
Months of survival at current burn rate. Growth without runway = death.
SAFE — Simple Agreement for Future Equity
Cash now, investor gets shares later. SAFE ≠ free money. Dilution comes later.
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.
When to use SAFE
Reach for "SAFE" when the conversation is specifically about simple agreement for future equity. Cash now, investor gets shares later. SAFE ≠ free money. Dilution comes later.
FAQs
What is the difference between Runway and SAFE?
Runway stands for Months of Survival — Months of survival at current burn rate. Growth without runway = death. SAFE stands for Simple Agreement for Future Equity — Cash now, investor gets shares later. SAFE ≠ free money. Dilution comes later.
Are Runway and SAFE the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. Runway = Months of Survival. SAFE = Simple Agreement for Future Equity.
When should I use Runway vs SAFE?
Use Runway when you're specifically referring to months of survival. Use SAFE when the topic is simple agreement for future equity.