Burn Rate
Intermediate Level
Bengaluru
Entrepreneurship
3 views
Definition
The rate at which a startup spends its capital, typically measured monthly.
Detailed Explanation
Gross burn is total expenses; net burn accounts for revenue. High burn rates can lead to cash crunch. Investors evaluate burn rate relative to growth. "Burn multiple" compares burn to revenue growth.
Example
A startup spending ₹50 lakh monthly with ₹20 lakh revenue has ₹30 lakh net burn.
Local Context (Bengaluru)
Post-2022, Bengaluru startups focus on reducing burn rate and achieving profitability.
Related Terms
V
Venture Capital
Financing provided to startups and early-stage com...
M
Micro, Small and Medium Enterprises
Classification of businesses based on investment a...
K
Karnataka Startup Policy
Government framework providing incentives, funding...
B
Belagavi Industrial Cluster
A manufacturing hub in North Karnataka specializin...
U
Unicorn
A privately held startup company valued at over $1...