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 uses up its cash reserves or funding to cover its expenses, such as salaries, rent, and other operational costs. It is often used as a measure of a company's financial health and sustainability, as a high burn rate may indicate that the company is spending more than it is bringing in and may not be able to sustain its operations in the long term.
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