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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – The Burn Multiple
Description: The Burn Multiple Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The burn rate is a key metric for high-growth startups. This is the amount of cash being spent over and above the cash revenue taken in. The Burn Multiple is the amount of cash being burned divided by the net revenue. This metric indicates how fast the money is being spent compared to the growth rate. For startups that are in high-growth mode, this metric ranges from 1 to 5X. The lower the multiple, the more efficient the...