Cash burn rate is the rate at which a startup spends its available cash to cover operating expenses before generating positive cash flow from its operations. Understanding the cash burn rate is crucial for startups as it helps in assessing how long a company can sustain its operations before needing additional funding. It’s closely linked to the financial health and operational efficiency of a startup, especially when navigating through challenges or considering pivots in their business model.
congrats on reading the definition of Cash Burn Rate. now let's actually learn it.