How to Calculate Gross Burn Rate?

In the world of startups, a key measure for investors is how quickly you can burn through your cash. The higher your company's burn rate is when compared with other companies in similar industries and markets - meaning that there are many competing firms doing what they do best but not all surpassing each other financially-the faster it will run out of money unless more financing or funding becomes available from somewhere outside sources. The formula is: Gross burn rate = Cash / Monthly operating expenses

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