Run Rate

Noun · Startup & VC

Definitions

  1. A projected annualized level based on current short-term performance, such as monthly revenue multiplied forward. Run rate is useful for quick framing but can be misleading when the business is seasonal or volatile.

    In plain English: A projection of future scale based on the current pace.

    Example: "The business reached a ten-million run rate well before it had ten million in recognized annual revenue."

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