Definition
Burn rate and runway are the two most important cash metrics for any startup. Gross burn is total monthly expenses; net burn subtracts revenue. GitDealFlow's engineering signals can indicate whether a startup is investing in growth or conserving cash.
Frequently Asked Questions
What's a normal burn rate?
Pre-seed: $20-50K/month. Seed: $50-150K/month. Series A: $150-500K/month. Gross burn varies significantly by sector.
What's the difference between gross and net burn?
Gross burn = total monthly expenses. Net burn = gross burn minus monthly revenue. Net burn matters more because it determines actual runway.
How does burn rate affect fundraising?
High burn with strong growth signals (rising engineering velocity per GitDealFlow) is defensible. High burn with decelerating momentum is a crisis.