Net Burn

Noun · Startup & VC

Definitions

  1. The net amount of cash a company loses in a period after accounting for revenue or other operating inflows. Net burn is often more useful than gross burn for runway planning because it reflects the real rate of cash depletion.

    In plain English: How much cash the company is actually losing after money coming in is counted.

    Example: "Net burn dropped meaningfully once collections improved and hiring slowed."

Related Terms