{"id":1095,"date":"2026-04-14T12:20:57","date_gmt":"2026-04-14T15:20:57","guid":{"rendered":"https:\/\/montreal.ventures\/?post_type=glospa-glossary&#038;p=1095"},"modified":"2026-04-14T12:20:57","modified_gmt":"2026-04-14T15:20:57","slug":"burn-rate","status":"publish","type":"glospa-glossary","link":"https:\/\/montreal.ventures\/en\/glossary\/burn-rate\/","title":{"rendered":"Burn Rate"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Burn Rate is a financial metric that measures the speed at which a company consumes its cash capital to cover operating expenses before achieving positive cash flow. In the startup ecosystem, which often operates at a book loss in the early stages to prioritize growth and market capture, Burn Rate is the indicator that determines the efficiency of spending relative to available capital. There are two main categories: Gross Burn Rate and Net Burn Rate. Gross Burn Rate represents the total sum of all monthly cash outflows, including payroll, rent, servers, and marketing. Net Burn Rate, on the other hand, is the difference between total revenue received and total expenses; it is this value that indicates the actual speed at which the company's bank balance is decreasing. Investors monitor this metric to assess the founders' financial discipline and the need for future funding rounds.<\/span><\/p>\n<p><b>Practical Example:<\/b><span style=\"font-weight: 400;\"> A startup has R$ 1,000,000 in its bank account. Its total monthly expenses (salaries, cloud infrastructure, and marketing campaigns) amount to R$ 150,000. At the same time, the company already generates R$ 50,000 per month from its customers. The company's Gross Burn Rate is R$ 150,000. However, its Net Burn Rate is R$ 100,000 (R$ 150,000 in expenses minus R$ 50,000 in revenue). This means that with each month of operation, the company's net worth is reduced by R$ 100,000 to keep its activities running.<br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Read the book: \u201c<\/span><i><span style=\"font-weight: 400;\">The Hard Side of Difficult Situations\u201d<\/span><\/i><span style=\"font-weight: 400;\">, by Ben Horowitz.<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>O Burn Rate \u00e9 uma m\u00e9trica financeira que mensura a velocidade com que uma empresa consome seu capital de caixa para cobrir [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1096,"template":"","glospa-glossary-category":[],"class_list":["post-1095","glospa-glossary","type-glospa-glossary","status-publish","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/montreal.ventures\/en\/wp-json\/wp\/v2\/glospa-glossary\/1095","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/montreal.ventures\/en\/wp-json\/wp\/v2\/glospa-glossary"}],"about":[{"href":"https:\/\/montreal.ventures\/en\/wp-json\/wp\/v2\/types\/glospa-glossary"}],"author":[{"embeddable":true,"href":"https:\/\/montreal.ventures\/en\/wp-json\/wp\/v2\/users\/3"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/montreal.ventures\/en\/wp-json\/wp\/v2\/media\/1096"}],"wp:attachment":[{"href":"https:\/\/montreal.ventures\/en\/wp-json\/wp\/v2\/media?parent=1095"}],"wp:term":[{"taxonomy":"glospa-glossary-category","embeddable":true,"href":"https:\/\/montreal.ventures\/en\/wp-json\/wp\/v2\/glospa-glossary-category?post=1095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}