burn rate

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Burn rate

Used in venture capital financing to refer to the rate at which a startup company expends capital to finance overhead costs prior to the generation of positive cash flow.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Burn Rate

The amount of money that a company spends each month from the amount it has raised from venture capital. For example, if a company is spending $100,000 per month, it is said to have a burn rate of 100,000. The burn rate is measured until the company begins to have a positive cash flow. If the burn rate exceeds expectations or cash flow remains negative for too long, the company may have a difficult time becoming profitable.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

burn rate

The speed with which a company consumes cash, generally stated on a monthly basis. A high burn rate indicates a firm will soon be out of business unless it can raise additional capital, dramatically increase cash sales, or reduce expenses. The burn rate was particularly high for dot-com companies that placed emphasis on capturing market share rather than profitability.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Please note that the comparatively lighter charge weights of faster burn rate propellants should not be called "reduced loads." They are just the "correct load" of that powder to use when loading down magnum handgun ammo.
Concrete, steel, masonry, solid wood and other traditional building materials have a lower burn rate than manmade materials like particle board, composite wood and veneers.
The cars versus planes debate has other confounding factors: Due to the burn rate on takeoff and landing, any flight that requires a connection is a nonstarter, climatewise.
Energy conservation efforts during flight operations resulted in a fuel burn rate (gallons per flight hour) that was lower in two of the four quarters in fiscal year 2014 than the historical burn rate for all nine F/A-18 A-D Hornet squadrons.
On the Democratic side, Bloomberg has a look at Hillary Clinton's campaign, which burned through about 40 percent of its funds, while her top rival Bernie Sanders, the Vermont senator, had a burn rate of 20 percent.
Its September 2014 quarterly statement shows that RXi's quarterly burn rate was about twice that during the first nine months this year.
Two things-actually working (as opposed to enjoying city life) and reducing their burn rate. And Happy Farm successfully attracts people even from outside Ukraine.
Compared to the A380, Boeing claims the 747-8 has a 19% improvement in trip costs, 3% lower seat-mile costs and a 15% better fuel burn rate, with double-digit improvements in operating costs and emissions, while being 30 percent quieter and adding more capacity.
The study found that a low glycaemic index and low carb diet increased calorie burn rate, while not escalating the diseasecausing stress hormone levels in the body.