What is the burn rate?
Burn rate is usually associated with the rate at which a new company spends its venture capital. Usually, the burn rate is calculated on a monthly basis. Meaning a company with a burn rate of $500,000 is spending $500,000 per month. The burn rate is generally representative of two things: the amount of cash a company spends before generating its own income, and a company’s runway (the amount of time a company has before it runs out of money).
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