Runway and Burn Rate: Metrics Every Founder Should Know
Runway and burn rate sound like finance jargon, but they are really about one thing: time. Time to build product, time to learn customers, time to survive mistakes, and time to keep your team focused instead of frantic. In early-stage companies, money rarely runs out because founders failed to “do the math.” It runs out because the math was wrong for the way the business actually behaves. Revenue might look steady on paper while the cash reality swings wildly. Expenses m
CAPM and Portfolio Theory: The Math Behind Modern Investing
Modern investing is full of stories, but the best parts of the craft are arithmetic problems with emotional consequences. Portfolio theory gives the arithmetic. CAPM, the Capital Asset Pricing Model, is one of the most used ways people connect that arithmetic to the returns they can reasonably expect. Between them, you get a framework that is elegant enough to be useful, and fragile enough that you learn quickly where not to overtrust it. This is not just theory for clas