burn rate

What is a Healthy Burn Rate?

A "healthy" burn rate varies depending on the stage and industry of the startup. Generally, early-stage startups may have a higher burn rate due to initial costs in product development, marketing, and hiring. However, a sustainable burn rate should align with your runway, or the amount of time you have before running out of cash. A common rule of thumb is to maintain at least 12-18 months of runway to provide a buffer for unexpected challenges or delays.

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