noun General Slang

Burn rate

· noun · finance

How fast a startup is torching its cash.

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Definitions

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Monthly net cash outflow. Gross burn is total spend; net burn is spend minus revenue. Divide cash in the bank by burn and you get runway, the number of months until you're raising or dead.

“Burn's 800k a month, we've got 14 months runway before we need to raise.”
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Burn rate In A Sentence

Burn's 800k a month, we've got 14 months runway before we need to raise.

Origin & Usage

Variants burn

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