Burn multiple

A oldie but goldie on evaluating revenue growth vs losses by David Sacks: The Burn Multiple. “The beauty of the Burn Multiple is that it’s a catch-all metric. Any serious problem will eventually impact the Burn Multiple by either increasing burn, decreasing net new ARR, or (most tricky) increasing both but at disproportionate rates.”

Author: Henrik Torstensson

Partner at Alliance VC. Investing in Nordic early-stage tech startups.

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