Burn rate is the rate at which a company spends its available cash in excess of what it earns on a monthly basis. This might change month to month but is most easily calculated by dividing the ...
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How to calculate your startup’s runway (and extend it)
You probably know your startup’s runway “roughly.” You glance at the bank balance, divide by monthly burn, and move on. But then an invoice hits early, a hire takes longer to ramp, or revenue slips by ...
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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 ...
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