Burn Rate

Your burn rate is the speed at which your cash balance is going down. If you had $1mm in cash on January 1st, and now it is October 1st and you have $250,000 left, your burn rate is $750,000/9, or $83,333/month.

 

(Full Post: http://www.avc.com/a_vc/2011/12/burn-rate.html)


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Fred Wilson 

Fred Wilson has been a venture capitalist since 1987. He currently is a managing partner at Union Square Ventures and also founded Flatiron Partners. Fred has a Bachelors degree in Mechanical Engineering from MIT and an MBA from The Wharton School of Business at the University of Pennsylvania. Fred is married with three kids and lives in New York City.

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Filed Under:
Collection: Strategy & Starting Up
Category: Budgeting, Projecting & Burn Rate