A runway extension gives you control over when to raise funds. It can buy time to secure a higher valuation or wait for better market conditions. If you're close to becoming cash flow positive, it helps you get there without raising more equity.

The ideal time to act is right after a fundraise when your runway is sufficient, as this affects your financing terms. Many of our clients use re:cap to finance day-to-day spending, preserving their equity for long-term investments. However, if you wait too long and your runway shrinks, securing funding – even at higher costs – can become nearly impossible.

re:cap’s funding can extend your runway, but the exact effect depends on various factors. On average, our funding adds 12 months to your runway. In many cases, it even enables profitability without further equity. With re:cap Insights, you can calculate your runway based on your specific situation and see how your cash flow will develop in the future.

re:cap’s funding works like a revolving financing line, giving you control over how much of your funding limit you use to extend your runway.

You decide whether to increase your funding, stay cash flow neutral, or start paying back, depending on your available limit.