Business • Startups & Venture Capital
Your Startup’s Revenue Is Booming — But Burn Multiple Could Expose a Hidden Problem
Burn Multiple measures how much cash a startup burns to add each dollar of net new annual recurring revenue. This explainer shows why two companies with identical ARR growth can have very different capital efficiency, how to calculate the metric, what common benchmarks suggest, and why founders should view it alongside retention, margins, runway and other business measures.
Today•5 views today