Burn Rate

Définition

Burn rate is the amount of cash a company spends per month above what it earns. Gross burn is total monthly spending; net burn subtracts revenue.

Comment cela se présente dans le financement

Burn rate determines runway: $2M in the bank with $100K monthly net burn equals 20 months of runway.

Questions fréquemment posées

What is a healthy burn rate?

One that leaves 18 to 24 months of runway after a raise and buys measurable progress; the ratio of burn to growth (burn multiple) matters more than the absolute number.

What is the difference between gross and net burn?

Gross burn is all cash out per month; net burn is cash out minus cash in. Investors usually mean net burn.

Ressources Round Funded

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