What is the Right Burn Rate at a Startup Company?
Both Sides of the Table
SEPTEMBER 28, 2014
So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. This is why investors really like SaaS software companies where you have recurring revenue and your largest customer accounts for < 5% of your revenue and your renewals rates are > 90%.
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