Burn Rate (noun) Definition, Meaning & Examples

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noun Business.
  1. the negative cash flow for an enterprise, calculated as the monthly sum of revenue minus operating expenses: Investors aren’t concerned about the company’s high burn rate since its growth is also explosive.
  2. the operating expenses of an enterprise, sometimes presented as the length of time a startup investment will last without additional income if the monthly operating expenses remain the same: At the current burn rate, the company can fund two more quarters before it’s forced to seek fresh sources of cash inflow.
Burn Rate (noun) Definition, Meaning & Examples

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