Categories: Product Development
The rate at which a new company uses up its venture capital to finance overhead before generating positive cash flow from operations. In other words, it’s a measure of negative cash flow.
Definition of "Burn Rate" by Chat GPT: Burn Rate refers to the rate at which a company or individual is spending their available cash reserves or capital. It is typically used in the context of startups or new businesses to indicate how quickly they are using up their funds to cover expenses before they start generating revenue. A high burn rate may indicate that a company is at risk of running out of money, while a low burn rate suggests that the company is managing its finances effectively.
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