Frequently asked questions
What is the burn rate in startup?
The burn rate measures how quickly a startup uses its cash reserves to cover expenses, typically calculated on a monthly basis.
What is the difference between burn rate and run rate?
Burn rate measures how quickly a company uses up its cash reserves, while run rate projects future performance based on current financial results.
What does burn rate mean in finance?
Burn rate refers to how quickly a company is using up its cash reserves before it starts making a profit.