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When Keith Rabois, an experienced entrepreneur and investor, talks to founders, his message is clear: don’t get caught up in worrying about how much runway (time before your company runs out of money) you have—focus on achieving lift (traction and growth).
Photo: Forbes
Rabois explains that a company’s real value lies in its ability to take off, not in how much time it has left to keep burning through cash. While having more runway can help give a company more time to succeed, it’s pointless if that time isn’t being used to actually achieve something meaningful. “Runway is a tactic for achieving lift,” he says, but if the lift isn’t happening, then the extra time is just wasted.
Achieving Lift vs. Extending Runway
Too many founders, according to Rabois, focus on raising money just to extend their runway. They think that having two years of funds will keep them safe. But Rabois challenges this mindset. For him, it's not about how long a company can survive, but how quickly it can get off the ground. Founders should instead be asking themselves, how do I achieve lift with the resources I have?
He advises against worrying about having a few months of runway left if your company is starting to show real traction. If you’re close to hitting a key milestone or seeing viral growth, even with just three months left, most investors will line up to fund you. The key is showing progress and potential—not just sitting on a pile of cash waiting for something to happen.
Risks and Priorities: What Really Matters
When Rabois invests in companies, he focuses on three key risks. These are the big obstacles the startup needs to overcome in order to be successful. You usually can’t solve all three at once, but the goal is to prioritize the most important one first and direct your energy toward overcoming it.
For Rabois, runway only matters if it’s being used to push the company past one of these key risks. If the extra time isn’t bringing you closer to lift, it’s not worth raising money just to buy more months of survival. He advises founders to be strategic with their resources and laser-focused on getting their company to the next phase of growth.
“Let Your Fuel Tank Run Low”
Rabois even goes so far as to suggest that founders should be willing to let their fuel tank run low—down to almost zero—if they’re on the verge of lift. This might seem risky, but if you’re really close to taking off, VCs will be eager to invest in you. Having months and months of runway won’t make much of a difference if your company isn’t getting closer to meaningful traction.
Contrary to what many might think, it’s not about raising money from a position of strength just because you’ve got a year or more of runway left. It’s about showing potential investors that you have momentum, and the timing of your cash reserves is secondary to that.
Examples of Entrepreneurs Who Took the Leap
Rabois’ advice has been proven by entrepreneurs who took big risks and focused on growth rather than runway. David Gilboa and Neil Blumenthal of Warby Parker, for example, were told that the eyewear industry would crush them if they didn’t follow the traditional brick-and-mortar model. But instead of worrying about runway and playing it safe, they focused on proving that people would buy glasses online—a huge risk at the time. They spent every bit of their runway on proving this and, once they did, funding wasn’t an issue.
Another example is Tope Awotona, the founder of Calendly, who bootstrapped his company for years before finally accepting outside investment. He didn't raise money until he was sure that his product was gaining traction in a way that would set him apart from the competition. By focusing on product-market fit and growth rather than extending runway, he built a profitable company that VCs were eager to invest in once it was clear it had achieved lift.
Conclusion: Lift First, Runway Second
For Keith Rabois, the ultimate goal is to achieve lift. Runway is simply a tool to get there, but it’s not the goal itself. Don’t get bogged down in trying to survive for as long as possible—focus on gaining the traction you need to grow, even if it means your fuel tank is almost empty. When you reach that point of lift, investors will be more than willing to help you soar.
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