Burn Rate

Burn rate is the rate at which companies spend.

Alot of startups have absurdly high burn rates which is the antithesis of why investors generally invest in software companies in the first place.

High burn rates for a company less than 20 months old is an easy sign of telling whether startup founders are retarded and only made it that far by being likable and well connected. Most of the time high burn rates aren't warranted and it's an easy sign of telling that a group has no fucking clue what they're doing.

A bunch of my Stanford classmates graduated and raised money from their prototype. I could tell they're burn rate was high even after raising so much money. Any idiot could see their traction didn't warrant the spending. They closed after a year and are now working on new startups. I pity the early investors who will sink their teeth into the next batch of hot bullshit they oven roast and serve in their next venture.

Added by yungsnuggie over 9 years ago