When Burn Rate Outweighs Enthusiasm
JANUARY 13, 2016
Despite that nearly all venture-backed startups burn capital unsustainably, Uber’s level of spending is viewed as particularly problematic among its naysayers. It will be able to sustain its burn rate based on that excitement unless something surprising happens to its business, or it goes public. It doesn’t matter whether a company’s burn rate is $10K per month or $10 million per month, companies die when their burn rates are greater than investor enthusiasm.