Cash Burn Rate
Cash Burn Rate is the rate at which a startup expends its cash reserves before generating positive cash flow from operations.
Benefits
Knowing your cash burn rate helps plan for future funding. It lets startups extend their runway, giving them more time to become profitable.
Frequently Asked Questions
What is the cash burn rate of a startup?
The cash burn rate of a startup is how fast it spends its cash before making a profit. It shows the startup`s cash flow health.
What is the cash flow burn rate?
The cash flow burn rate is the speed at which a company spends its cash. It’s a measure of how quickly cash is going out of the business.
What is a burn rate in business?
In business, the burn rate is how quickly a company uses its cash reserves. It`s often used by startups to track cash use over time.
Key Takeaway
The cash burn rate is a key metric for startups. It helps them understand their financial health and plan ahead to avoid running out of money.