Glossary
Burn Rate
Burn rate is the pace at which a company spends its cash reserves, usually quoted as a monthly figure. It matters most to start-ups and loss-making businesses that live off a finite cash balance rather than steady profit. Tracking it tells founders how quickly the runway is shrinking and when the next revenue or funding milestone has to land. Our guide to startup finance in Canada covers how to measure and control burn before it becomes a crisis.
Related reading