Burn Multiple
Definition
Burn multiple is net cash burned divided by net new ARR over the same period, measuring how efficiently a startup buys growth. Under 2 is considered fundable in 2026; under 1.5 is strong.
Wie es im Fundraising vorkommt
Investors use burn multiple as a first-screen efficiency metric: burning $3M to add $1M of ARR (a 3x multiple) signals an expensive growth engine.
Häufig gestellte Fragen
Why did burn multiple become important?
After 2022, capital stopped subsidizing inefficient growth; burn multiple compresses growth and efficiency into one number investors can compare across companies.
How do I improve my burn multiple?
Grow revenue faster than spending: better retention, higher-margin channels, and pricing power all move it more than cost cuts alone.
Verwandte Begriffe
Setzen Sie diesen Begriff ein
Definitionen gewinnen nur dann Verhandlungen, wenn Sie sich in einer befinden. Finden Sie die Investoren, die Ihre Phase finanzieren, und beginnen Sie das Gespräch.
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