A startup company’s burn rate refers to how quickly it can spend its money. You can also think of burn rate as the amount of time a company can continue operating until it has no more money left to spend. Entrepreneurs use it to measure the sustainability of a business venture. Burn rates are usually expressed in months but may also be estimated in weeks or even days.

If you literally get all your money, set it all on fire and watch until everything burns away, you’ll get a sense of what burn rate is.

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