释义 |
burn rate
burn rateThe speed with which a new, unprofitable company is spending its initial funding whether from investors or from an IPO. In the world of high-speed high tech, the burn rate is carefully monitored to determine how long the company has to live.burn rateThe rate at which a material will burn after the ignition heat source has been removed.Burn Rate A popular term for the rate at which a non-income-producing company consumes the funds invested in it by venture capitalistsburn rate
Burn rateUsed in venture capital financing to refer to the rate at which a startup company expends capital to finance overhead costs prior to the generation of positive cash flow.Burn RateThe amount of money that a company spends each month from the amount it has raised from venture capital. For example, if a company is spending $100,000 per month, it is said to have a burn rate of 100,000. The burn rate is measured until the company begins to have a positive cash flow. If the burn rate exceeds expectations or cash flow remains negative for too long, the company may have a difficult time becoming profitable.burn rate The speed with which a company consumes cash, generally stated on a monthly basis. A high burn rate indicates a firm will soon be out of business unless it can raise additional capital, dramatically increase cash sales, or reduce expenses. The burn rate was particularly high for dot-com companies that placed emphasis on capturing market share rather than profitability. |