Glossary
Burn rate
How much more money leaves the company each month than comes in.
Net burn is the honest version: cash out minus cash in. Gross burn ignores revenue and only counts spending, which flatters a company with real income and is the version some founders quote without saying which they mean.
State which one you are giving. An investor who assumes net when you meant gross will work out a longer runway than you actually have, and will not thank you when they find out.
Related terms
- Runway — How many months you can keep going before the money runs out.
- CAC payback period — How many months a customer takes to repay what you spent winning them.
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The GTM Score is published in full, check by check, so you can see exactly what each figure is worth before you go looking for it.
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