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
People Also Ask
What does "burn rate" mean?
Burn rate is how fast a startup is spending — or torching — its cash, usually measured per month.
How do you use "burn rate" in a sentence?
"At this burn rate we've got six months of runway left before we need more funding."
Why is burn rate important for startups?
It tells founders and investors how long the company can survive on its current cash before it runs out or needs to raise more.
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