Burn Rate


Burn rate is a measure of how quickly a business is losing, or burning through, money. This is a particularly important metric for startups and venture-backed businesses that might be operating at a loss intentionally, investing more than they’re earning back into the business. Burn rate is typically calculated in monthly terms. [1]
Regardless of its situation, any company should have a burn rate that ensures at least six months of cash runway. [2]

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