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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – Burn Multiple
Description: Burn Multiple Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Burn rate is the amount of cash spent over and above the revenue received. It’s typically calculated on a monthly basis. Burn multiple is a metric that calculates the capital efficiency of a startup. To calculate burn multiple divide the monthly burn rate by the net new ARR. It shows how much revenue your startup is generating vs dollars spent. The burn multiple shows the efficiency of the business unlike the CAC: LTV ratio which measures just sa...