Net Burn
Net burn is a key SaaS startup metric that represents the net amount of cash a company loses each month after accounting for cash inflows and outflows. It helps measure how quickly you are spending cash reserves and how long you can sustain operations before needing additional funding.
Net Burn is calculated as follows:
Transactions which are generally excluded from Net Burn are equity transactions and bank to bank transfers including Stripe + Credit Card transfers.
For more information on these inputs, please refer to these articles:
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