Planning your startup’s pre-seed runway? Here’s what most founders get wrong

Planning your startup’s pre-seed runway? Here’s what most founders get wrong

Fundraising is tough, especially when you’re constantly checking the bank balance while trying to build something real. Raise too little, and you’re back pitching before you’ve made progress. Raise too much, and you’re giving away equity you haven’t even had a chance to earn.

So how do you figure out what’s just right? That’s what this post is for.

Why runway length actually matters

Let’s be real, investors aren’t writing checks just so you can stay alive. They want to see you build, learn, ship, and grow. Most pre-seed rounds are designed to buy you 18–24 months of focused execution.

That usually breaks down to:

• 12–18 months of actual heads-down work
• 6 months to prep and raise your next round without scrambling

A healthy runway gives you breathing room. It means you’re not pitching with one month of cash left and panic in your eyes. You’re in control, not on the back foot.

How to figure out your runway

This isn’t about copying what someone else raised. Your runway depends on your goals, your burn, and how fast you need to move.

1. Map your milestones

Start with the big picture:

• Are you building an MVP?
• Testing for product-market fit?
• Running early GTM experiments?
  Trying to get your first paying customers?

Get super clear on what progress looks like between now and your seed round.

2. Build a burn model

Now work backwards. Estimate your monthly spend:

• Team salaries (even if it’s just the founders for now)
• Product + dev costs
• Tools, software, contractors
• GTM, marketing, design
• Legal, ops, and “oh yeah, we forgot about that” expenses

Multiply your burn by how long you think you need to hit those milestones. Then tack on 6 months for fundraising.

✨ Founder tip: Add 15–20% cushion. Things always cost more or take longer than expected.

‍3. Choose your runway range

So, what’s the magic number?

• 18 months = lean build and test
• 24 months = more room to iterate or go after a slightly bigger vision
• 30+ months = okay if you’re in a slow market, but be ready to justify it

Remember: the longer your runway, the more you’ll likely dilute. The goal is to raise enough, not everything.

Common mistakes to avoid

We see founders trip on this stuff all the time. Here’s what to watch for:

• Raising for <12 months: You’ll be fundraising again before you’ve built anything meaningful.
• Raising way more than you need (with no clear plan): Just burning equity on vibes.
• No fundraising buffer: If your runway ends the same month you start fundraising, you’re doing it wrong. Give yourself time to warm up, pitch, and close.

A quick sample timeline

Here’s what 24 months of thoughtful execution might look like at the pre-seed stage:

• Months 0–6: MVP, early users, feedback loops
• Months 6–12: Improve product, sharpen GTM, grow usage
• Months 12–16: Build your fundraising narrative + investor pipeline
• Months 16–18: Start pitching and closing the next round
• Months 18–24: Deploy fresh capital, double down on what’s working

This isn’t a hard rule, but it’s a good frame for planning.

Pro tips to make your runway work harder

• Forecast monthly and track burn like a hawk: Don’t wait for a board meeting to realize you’re behind.
• Break milestones into bite-sized chunks: “Launch MVP” sounds big. Break it into weeks.
• Talk to investors early (before you need them): Momentum builds over time.
• Know your numbers: Not just how much you want, but why. Smart founders raise with a clear story.

Your pre-seed runway isn’t just a number, it’s the story of what you’re going to achieve before your next raise. Aim for 18–24 months, align it with real milestones, and bake in space to raise before the money runs out.

Don’t let lack of planning be what slows you down.

Planning your runway? Let Capwave help.

Capwave is built for early-stage founders who want to raise smarter. We help you:

• Plan your raise with confidence
• Turn your pitch into a compelling investor story
• Keep investors in the loop with clean, consistent updates (coming soon)

🎯Bonus: Grab our Basic Dilution Calculator to see how different runway lengths impact your equity, and raise with eyes wide open.

Or jump into Capwave AI to streamline your next raise from pitch deck to investor updates (coming soon), all in one place. 

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