Burn Rate & Runway Management
Written by Harry Prabandham
Curated by Rubric Financial
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Understanding Burn Rate
- Gross burn is total monthly cash outflow; net burn subtracts revenue, showing actual cash consumption per month
- Track burn weekly in early-stage startups; monthly reviews are too infrequent when runway is under 12 months
- Distinguish between fixed burn (rent, salaries, SaaS tools) and variable burn (marketing spend, contractor costs) to identify levers for reduction
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About the author
Harry PrabandhamFounder & CEO
Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.
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