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.

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.

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.
References in periodicals archive ?
Please note that the comparatively lighter charge weights of faster burn rate propellants should not be called "reduced loads.
IMR Trail Boss is a bulky fast burn rate powder, so you cannot double charge a case without noticing your mistake.
However, if you simply load down (say only half of the slow burn rate propellant of a favorite hunting load), you will likely experience erratic ignition or even a misfire, which may result in lodging the bullet in the barrel.
High Cash Burn Rate and Zone of Insolvency Cause Bondholders to Sue
Creditors, with a close watch on the cash burn rate, are acting collectively earlier out of concern that the telecom may not pay.
While not sounding a long time using traditional businesses as a yardstick, the 20-month figure still seems like an eternity compared with the average burn rate of 13 months reported in December.
B2C firms typically have a burn rate of 15 months, while their B2B rivals survive an average 23 months.
Substituting the faster burn rate IMR propellant for the slower H4895 variety can definitely be hazardous.
In no way does a burn rate chart suggest or intend to imply that this or that propellant is a safe substitute for one that shares even the exact same level on the chart.
A quick way to overcome an unfounded rationale to use a burn rate chart in this manner is to compare the charts shown in several different manuals.
com companies over the next 12 months, driven by short burn rates and the potential to generate efficiency savings and revenue enhancement.