cash burn

Startup fund depletion

Cash burn is the rate at which a company spends its cash reserves, typically measured monthly.

The term appears most often in startup and venture capital contexts, where companies operate at a loss while pursuing growth: At their current cash burn, they have eighteen months of runway.

High cash burn without revenue growth signals trouble.

Related

bleeding · capital · funding · venture · Series A · hemorrhage · expenses · overhead · depletion · negative · drain · red ink · death spiral · operating · monthly · survival · going concern · investors

Categories
Opposites
financial flow direction

cash burnrevenue generation

Creating streams of income

profit · earnings · income · cash reserves · net income

financial sustainability

cash burnprofitability

Capacity to generate gain

self-sufficiency · break-even · solvency · fiscal health · sustainable growth

Family

cash, burn, cashed, cashing, cashes, cashless, burned, burnt, burning

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Negative · Rated G