High Burn Rates Result in Short Startup Runways
Startup Professionals Musings
JANUARY 28, 2011
Cash is the fuel of every startup. Your burn rate is the rate at which that money is being spent, and allows an estimate of how long you can go before refueling (runway). That refueling is when you will need more investment, or when you will break even and begin that steep profitable growth curve. Investors look at your burn rate to see how efficient and effective you are at running the business.
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