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Burn Rate

Burn Rate

  • Term

    Main definition

  • Burn Rate

    The monthly negative cash flow of a business that experiences negative cash flows (which almost always refers to start-ups and early stage companies with little or no revenues), after crediting the revenues from operations, if any, over the same monthly period.

    Burn rate is expressed on a monthly basis and is related to the amount of runway the business has before it needs additional financing or revenues.

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