Burn Rate

December 07, 2013  |     |     |   0 Comment

The burn rate is a term commonly used in Internet business start-ups. It refers to the speed at which the start-up consumes its venture capital financing prior to developing a product and generating cash-flow.

A high burn rate means the business is running through its cash quickly. Burn rate is usually measured on a monthly basis. That is, it refers to the amount of cash the business is spending each month.


Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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