Definition
Burn multiple has replaced burn rate as the preferred efficiency metric for public market investors and crossover funds. A burn multiple of 1x means you spend $1 to get $1 of new ARR. GitDealFlow tracks the engineering ROI: teams with high engineering velocity but low burn multiple are building efficiently.
Frequently Asked Questions
What's a good burn multiple?
<1x is excellent (SaaS efficiency standard), 1-2x is good, 2-3x is acceptable for growth stage, >3x is concerning.