"Burn rate" refers to how much cash a company consumes in a certain period, commonly monthly, to cover all of their expenses. Most commonly, it's used to discuss companies that are unprofitable and ...
Investors pay close attention to the burn rate because it helps them understand how long a company's funds will last before it needs to raise additional capital. This is important because startups ...
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What is Burn Rate (and Why Investors Care)
You check your bank balance, do a mental run-rate calculation, and realize you’ve got maybe eight months of oxygen left. Investors keep asking about your “burn,” but the term still feels abstract, a ...
What Is The Burn Rate? Burn rate means the rate at which a company expends its cash reserves or funding. It is essentially a measure of how quickly a business is “burning” through its available ...
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