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Burn rate

How much cash the company spends per month **more** than it earns — the speed of the leak. Net burn subtracts revenue from gross spending.

Related: Runway · Monthly recurring revenue (MRR) · Customer acquisition cost (CAC)

A bit more nuance
  • High burn with weak traction is the classic startup risk story.
  • Emerging-market FX can change effective burn overnight.
Go deeper
Discussion questions
  • Which costs are “rent” vs “bets” in your budget?
  • What metric would justify doubling burn next quarter?

Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.