burn rate


burn rate
n.
The rate at which a newly-formed company spends cash on startup costs, research and development, and other expenses.
Example Citation:
"The company has about $ 500,000 in the bank, and Gardner has agreed to work for $ 50,000, half his normal salary, to minimize the company's burn rate, now about $ 50,000 a month."
Bloomberg News, "Shares shoot up for maker of gun locks"
Related Words: Category:

New words. 2013.

Look at other dictionaries:

  • Burn rate — is a synonymous term for negative cash flow. It is a measure for how fast a company will use up its shareholder capital. If the shareholder capital is exhausted, the company will either have to start making a profit, find additional funding, or… …   Wikipedia

  • burn rate — Used in venture capital financing to refer to the rate at which a startup company expends capital to finance overhead costs prior to the generation of positive cash flow. Bloomberg Financial Dictionary * * *    ► See Cash Burn. * * * burn rate UK …   Financial and business terms

  • Burn Rate — The rate at which a new company uses up its venture capital to finance overhead before generating positive cash flow from operations. In other words, it s a measure of negative cash flow. Burn rate is usually quoted in terms of cash spent per… …   Investment dictionary

  • burn rate — n. the rate at which an enterprise spends money, especially venture capital, in excess of income the corporation lays off workers to cut burn rate …   Useful english dictionary

  • burn rate — See cbr process controlled burn rate …   Dictionary of automotive terms

  • burn rate — (Economics) rate of spending capital by a company until it starts to earn a profit (usually a new company) …   English contemporary dictionary

  • burn rate — The rate at which a new company or project uses up its funding before cash begins to come in from its trading activities. It is frequently used to evaluate high tech or venture capital investments …   Big dictionary of business and management

  • Burn rate (chemistry) — In chemistry, the burn rate is a measure of the linear combustion rate of a compound or substance such as a candle or a propellant. The industry recognized nomenclatures are mm/s or in/s for millimeters per second or inches per second… …   Wikipedia

  • Cash-Burn-Rate — Die Cash Burn Rate (deutsch etwa: Geldverbrennungsrate) bezeichnet 1.) die Geschwindigkeit, mit der die finanziellen Mittel aufgebraucht werden oder 2.) den Zeitraum, in dem die liquiden Mittel eines Unternehmens vollständig aufgebraucht werden.… …   Deutsch Wikipedia

  • cash burn rate — UK US noun [C] (also burn rate) ► FINANCE the speed at which a company spends the money that is available to it, when it is not making more money than it spends: »We are not concerned about our cash burn rate, we have £117m in the bank which is… …   Financial and business terms