| Burn Rate | |
 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. |
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 Burn rate is usually quoted in terms of cash spent per month. For example, a burn rate of 1 million would mean the company is spending 1 million per month. When the burn rate begins to exceed forecasts, or revenue fails to meet expectations, the usual recourse is to reduce the burn rate (which, in most companies, means reducing staff). |
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 Don't Get Burned By The Burn Rate - How well do your companies manage money? Learn to analyze how fast they burn it. Spotting Disaster - When a company is headed for trouble, the warning signs are usually there. We tell you what to look for. |
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