Burn Multiple
How much cash you burn for every dollar of new ARR you add, where under 1 is efficient and over 2 means growth is costing way too much.
Read the full termDiagnose whether your startup actually survives the next twelve months.
How much cash you burn for every dollar of new ARR you add, where under 1 is efficient and over 2 means growth is costing way too much.
Read the full termHow fast you are losing cash each month, usually quoted as gross burn (every dollar out) or net burn (out minus revenue in).
Read the full termWhether your current growth rate gets you to profitability before the bank account hits zero, a sharper question than runway because it folds in whether you are actually catching up.
Read the full termEvery dollar of cash going out the door each month (payroll, software, rent, all of it) before any revenue is netted against it, so you see the raw size of the engine.
Read the full termThe cash you actually lose each month after revenue covers part of the spend, and the number that decides your runway when you divide it into the bank balance.
Read the full termHow many months you have left at the current pace before the bank account hits zero, assuming today's spend and revenue stay flat.
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