Glossary

Glossary

Glossary

Burn Multiple

Burn Multiple

Definition

A metric used by startups to assess how efficiently they are using their capital to generate revenue. It is calculated by dividing the net cash burned in a given period by the net new revenue generated in the same period. A lower burn multiple indicates more efficient use of capital.

A metric used by startups to assess how efficiently they are using their capital to generate revenue. It is calculated by dividing the net cash burned in a given period by the net new revenue generated in the same period. A lower burn multiple indicates more efficient use of capital.

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