Some Thoughts On Burn Rates
A VC : Venture Capital and Technology
SEPTEMBER 17, 2017
These losses are known in the industry vernacular as “burn rates” – how much cash you burn on a monthly basis. But how much burn is reasonable? Instinctively I feel that many of our portfolio companies, and the startup sector as a whole, operate on burn rates that are too high and are unsustainable. But it is hard to talk to a founder, a management team, or a Board about burn rates objectively.