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Burn Rate Definition

burn rate – n: the rate of net cash outflow, or the rate (monthly, quarterly, or yearly) at which a company’s cash outflows exceed the company’s cash inflows; in other words, the rate at which a startup business is using up, or “burning through,” its cash.

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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
Copyright © 2004-2006 CompanyCrafters LLC

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