CFO & Strategy
Burn Rate & Runway Management
Collated 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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