Finance
Burn rate
Burn rate is the pace at which a company spends cash beyond what it earns, usually expressed monthly. Net burn is cash out minus cash in; gross burn is total cash out. Burn rate combined with the cash balance determines runway.
In plain terms: How fast you are losing money each month.
Why it matters
The number investors ask for first and founders track least consistently. Calculated from the cash flow statement, not the P&L, because non-cash items and timing differences make profit a poor proxy.
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