What is Burn rate?
How fast the money leaves. Paired with the balance it gives you runway, which is the only figure that matters when raising or cutting.
Money
The definition
How much cash a business spends in a month beyond what it brings in.
An example
Spending $8,000 a month against $40,000 in the bank is a five month runway.
Related
Questions people ask
What is Burn rate?
How much cash a business spends in a month beyond what it brings in. How fast the money leaves. Paired with the balance it gives you runway, which is the only figure that matters when raising or cutting.