Some Thoughts On Burn Rates
A VC : Venture Capital and Technology
SEPTEMBER 17, 2017
These investments mostly take the form of operating losses, driven by headcount, where the monthly expenses are larger, often much larger, than revenues. 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? But it is hard to talk to a founder, a management team, or a Board about burn rates objectively.