The burn rate shows how quickly a startup is spending its capital before generating a positive cash flow. Investors scrutinize this metric to understand the startup’s runway, or how long the company can survive until it either becomes profitable or secures further funding. A manageable burn rate is a sign of prudent financial management.

The burn rate shows how quickly a startup is spending its capital before generating a positive cash flow. Investors scrutinize this metric to understand the startup’s runway, or how long the company can survive until it either becomes profitable or secures further funding. A manageable burn rate is a sign of prudent financial management.

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