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Investments glossary

Burn Rate


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Most people hew the battlements of life from compromise, erecting their impregnable keeps from judicious submissions, fabricating their philosophical drawbridges from emotional retractions and scalding marauders in the boiling oil of sour grapes.

— Zelda

The burn rate is typically used to describe the rate at which a new company is spending its venture capital to finance overhead before generating positive cash flow from operations. It is a measure of negative cash flow.

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