Burn Rate
The rate at which a startup spends its cash reserves, usually expressed monthly.
Gross burn is total monthly spend; net burn is spend minus revenue. Burn rate reveals how efficiently a startup uses capital and directly determines runway. Investors look for burn that is justified by progress — efficient growth is increasingly prized over growth at any cost.
Examples
A team with £40k costs and £15k revenue has a £25k net burn. — A startup cuts burn to extend runway during a tough market.
How it relates to The Startup Foundry
The Executability pillar of the Investability Report reflects capital discipline. The Foundry helps you demonstrate efficient use of funds to investors.