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Venture Deals

What is a Burn Rate

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May 03, 2023
What is a Burn Rate
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Neal Strickberger
Accepted Answer
May 03, 2023
Rate at which a company consumes cash, typically expressed monthly.
Gross Burn Rate is total  each month, including all operating expenses: salaries, contractors, legal, rent, marketing, R&D, software licenses, cloud/hosting etc.
Net Burn Rate is Gross Burn Rate minus any earned revenue.
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