Think Marathon, Not Sprint – Why Rolling Runway Matters More Than We Realise

At Sarcha Advisors, we’ve seen several companies face difficult situations, not because the idea wasn’t strong, but because they didn’t have enough cash flow visibility when it mattered most.

When a fundraise takes longer than expected, or the burn increases unexpectedly, it creates pressure. It can impact decision-making, shift priorities, and sometimes lead to choices that don’t align with the long-term direction of the business.

That’s why my father, Rohit Chanana and I believe in the discipline of maintaining a rolling runway, keeping 12–15 months of cash visibility, regardless of stage. It’s not about being overly cautious. It’s about ensuring that founders have the space to navigate uncertainty without having to compromise on what really matters.

This way of thinking is influenced by our background in value investing, particularly the idea of a margin of safety. You don’t only plan for what could go right; you create buffers for what might not. It helps preserve both flexibility and intent.

As Don Valentine said:
“All companies run out of money. The only question is when.”
It’s a helpful reminder to plan ahead, not just react.

So what contributes to a rolling runway?

Here are a few levers we’ve seen work well across our portfolio:

• Explore non-dilutive capital: Monetize IP, unlock adjacent revenue streams, price smartly, apply for grants, or enter niche markets.

• Maximize revenues creatively: Think partnerships, licensing, recurring models, or bundling to increase ARPU.

• Working capital efficiency: Faster collections, better supplier terms, lean operations.

• Frugal thinking, high ROI spending: Variabilize costs, prioritize scalable bets, and conserve burn.

These are not one-size-fits-all solutions. But building this thinking early often allows founders to make decisions with more clarity and less constraint, especially during uncertain periods.

A rolling runway is not just about managing risk. It’s about preserving the energy, time, and space required to build with intention.