Burn rate

How much cash the company spends per month. Gross burn is everything going out; net burn is what goes out after revenue comes in.

Example

Costs of $8,000/mo with $3,000/mo of revenue means gross burn $8,000, net burn $5,000.

Important

When an investor asks 'what's your burn?' they almost always mean NET burn. Answering with gross makes you look either wasteful or unclear.

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