Burn Rate

Burn rate is usually measured in monthly increments. It's a term describing how fast a new company is spending its venture capital before it generates positive income (profit).

Usually, this is reviewed by the company itself, and the investors of said company, to gauge how long the company has at the current rate before it...runs out of money.

There are two types: gross burn (operating costs) and net burn (total amount lost). Example of how this can be used: if you run a company at a net burn rate of $10 a month, and you only have $80 as venture capital, you will be able to continue at that rate for 8 months before you're out of capital (aka broke). Obviously, most companies would use much bigger numbers, but...you get the idea.