Eric Ries

Runway - The cash planning tool for startups

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Hyon Lee
Hey guys, I’m the developer at LTSE that built Runway, a free, visual tool to help you understand, manage and extend your cash runway. I built it for founders like me, who aren’t the biggest fan of spreadsheets, but want to build a sound financial model for my company. I’d love to hear your thoughts!
Hyon Lee
@whoismaxpelzner Thanks! Let me know if I can help :)
gazzer82
Any plans to integrate with external accountancy software, like Xero? So we can build scenarios on top of our baseline?
Marcus Gosling
@gazzer82 Hey gazzer82, yes we have one integration in the works which we will release soon. This will allow you to overlay your actual balance history on top of your planned balance.
Will Curran
@gazzer82 There are tools like Float that already do this. :)
gazzer82
@itswillcurran I've tried several, but they all generally fall over in one way or another. Quite often in how they handle VAT in the U.K. Any you would recommend in case I've missed them?
Will Curran
@gazzer82 I assume if Xero or Quickbooks online manage VAT well then Float would handle it perfectly. It's about making sure your accounting is setup correctly. I don't know about VAT to know for sure but I don't see why not?
Algert Sula
Designers are getting a pretty bad deal in the product screenshot estimate and I feel really bad for the Part-time CFO but great product nonetheless 👌😀
Hyon Lee
@algerts hahaha we'll consider a raise ;)
Hyon Lee
@algerts @robin_solis @marceire that would be Marcus :)
Alexandre Wayenberg
Awesome tool, would love to see the possibility to model CAC, Churn, COGS and also different type of revenue models like Freemium / HW + Saas, etc. Do you intend to implement that ? I have been working on a financial model for my startup in the last couple of days and ended up using Google sheet. What is great with a tool like that is to make the results visuals in order to understand what are the parameters that will drive growth and when the cash curve get negative to anticipate financing.
Hyon Lee
@alexwayen We have a few ideas around those models as well. One simple thing we were thinking was a cone shape graph to at least show you best/worst case scenarios.
Lee Lance
Wow @ericries another fantastic resource, thank you (and the whole team) so much. Been playing around with a scenario on the tool and it's super fast/easy to get it set up and modify to look at different scenarios. Critical knowledge but easy enough to get back on the task of building one's startup. Kudos.
Hyon Lee
@ericries @leelance Thanks for the positive feedback! :D
Alexandre Wayenberg
It would be great to be able to export some graph and summary data for a pitch deck in a standard size (16:9 / 4:3). You could have a branded export like "generated with Runway" to spread the word among Startup founders and investors.
Hyon Lee
@alexwayen great idea! you're able to export to a csv at the moment, but exporting the graph seems like the logical next step.
Campbell Macdonald
@alexwayen @hyonlee It would also be cool to import your stuff from csv/gsheets/xls format.
Hyon Lee
@alexwayen @cambel We got a lot of that - how do you see it working? would you be ok to download a template from us and fill it out? That might be the quickest way to implement it imo
Danny Smith
This is awesome. Would love the ability to use multiple currencies: some of out costs are in USD and some are in GBP.
Hyon Lee
@dannysmith ah, thanks for letting us know! I'll add that to our todo list :D
Eric Ries
I have worked with a lot of startups over the years, and one of the most common question any founder ever gets is: how much runway do you have left? I am repeatedly astonished how few founders really know the answer to this question. If that's you, you need to get on that right now! Don't take a guess or trust your gut on this one. On the other hand, you can easily count the ways building your own excel/sheets version of this model from scratch sucks. Mistakes, bad security, terrible sharing, etc. The LTSE team wanted to come up with something better, and this is our attempt. Thanks for all the comments so far! We love to hear your feedback.
Eric Friedman
Looks really interesting - why is it free?
Hyon Lee
@ericfriedman founders, especially early stage founders, are strapped for cash. a tool to help manage their cash shouldn't charge them :)
A.Fairiz
I achieved so much from this tool after toiling with it for half an hour. I spent like over two-weeks in Excel struggling to do the same thing. Thank you, makers!!!!
Hyon Lee
@cleavatron you're welcome and thanks for sharing! :D
Cristi Bârlădeanu
Congrats to the whole team, guys :) I see a bunch of tricky issues gracefully solved, it's always a difficult task to compromise between simplicity/ flexibility/ I-hate-Excel-leave-me-alone and still offering in-depth data. I was looking for such a tool for cash flow planning last year and eventually I ended up building my own, ThinkOut - http://thinkout.io. Have you thought yet of offering a basic API to feed income/ expense data from 3rd parties? Although ThinkOut was built more around services businesses (IT/ creative industries) we do have some users in tech startups (SaaS mostly) that would love to have some key metrics available. Cheers!
Hyon Lee
@kristache oh wow, great work on thinkout! We don't have any public APIs available yet, but it's on our minds for sure. For now, we're focused on helping founders themselves and less on the landscape/ecosystem
Kostya Rypta
As a startuper I know it is very important manages expenses. Hope this product can help with that
Jeff Weisbein
This looks like an incredibly useful service. One that surely will be able to replace my Excel spreadsheet and be much more helpful. When I clicked through to go to the site, I thought to myself, wouldn't it be great if this was a free service? I then clicked on the pricing page and was extremely grateful to see that it's being provided free as a public service. Bravo!
Hyon Lee
@jeffweisbein hahaha yup!
Sami Rehman
Not used the product yet but looks great. Will there be support for other currencies?
Hyon Lee
@sami_myfilmbuzz yes, we received multiple requests for it, so it's high up on our list now :)
Can Olcer
Awesome. Haven't tried it yet, but looks very useful. I have been searching for a lightweight, easy-to-use cash flow planning tool for a while now. Most are only compatible with accounting service integrations or are too complicated to use. I settled for Spreadsheets and PulseApp, but this looks better (hopefully).
Hyon Lee
@canolcer haha hopefully it'll be what you were looking for :) let me know if you need help getting set up!
Donté Ledbetter
This looks really neat!
Randy Ellis
Great release!
Sam Frentzel-Beyme
Cool tool! Would love to see some cost model integration, especially around labor categories like development, so we could project before bringing people on. This would help not only with budget planning, but actual allocation of dollars (ie: developers in SF vs Houston vs Upwork, etc).
Hyon Lee
@heysamfb we do have a % field to project growth. Does that work?
Sam Frentzel-Beyme
@hyonlee Thanks. That is helpful. But I was thinking about some kind of link that says "Estimate labor" for example with some connectors to labor rates by geography or platform. For example are labor rates in various areas different, so that I get more "runway" by using people in Vancouver vs. San Jose. And if you help me better spend my dollars... I'd pay for that! : )
Hyon Lee
@heysamfb ah gotcha! i'll dig around and see if there's a quick way to implement this :)
Sam Cholera
Just had a play around with this. You've made this super easy to follow for people who just want to click and go. Any plans to integrate with Sage?
Hyon Lee
@sam_cholera not at the moment, but we did get the same ask earlier today. we'll look into it!
Robert Romano
This looks great! Much nicer than looking at a spreadsheet. One thing that would be useful is a way to reference the numbers from other "Cases" so that you can keep certain assumptions the same or make adjustments that inherit from the "Base Case"
Hyon Lee
@robert_romano Ah, that's a great point. We also received a comment about having a general notes section for people to just write any notes free-form. Could that be useful here?