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Glossary: Burn Rate

What is Burn Rate?

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The amount of cash that a company consumes each month in order to continue operations. Occasionally refers to total expenses, but more commonly used to refer to cash receipts minus cash expenses when the difference is negative. Example: My company has a burn rate of $00,000 and $1,000,000 in cash on our balance sheet, so we have 10 months of runway.

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