the.com/burn rate

The speed at which a startup turns investor hope into rent and snacks.

means The pace at which a company spends its cash reserves before new revenue or funding arrives — usually measured per month.

from Compound coinage from everyday 'burn' (to consume rapidly, as in burning fuel or money) plus 'rate' (a measured speed). It entered startup and venture-capital jargon in the late 20th century, especially around the dot-com boom, as founders and investors needed a blunt metric for how fast cash reserves were being incinerated before profitability — or the next funding round — arrived.

measures
cash spent per month, not profit
runway link
cash left divided by burn equals runway
founder myth
growth excuses almost any burn, until it does not
vc lingo
low burn signals discipline, zero burn signals no ambition
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