burn rate

burn rate definition - finance
A measure of how quickly a company will exhaust its cash or available liquidity, used frequently in the venture capital industry. Burn rate is calculated by taking the total amount of cash on hand and dividing it by the monthly expenditures to see how many months the company could stay in business. The term was often used during the Internet boom

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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