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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Let’s set up a framework. There are many times when being overly capitalized before you’re ready is a negative. We want money to make some acquisitions (investors would prefer to fund M&A if they know specific deals – not to encourage bad behavior. But what IS the right amount of burn for a company?

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So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

As I have pointed out in previous posts , 91% of VCs surveyed believe prices are declining (30% believe substantially) and 77% believe that funding will take longer than it has in the past. The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital.

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