Gross burn rate: financial pace of spending

Gross burn rate is a key financial metric that measures a startup's monthly spending pace by looking at total expenses without taking revenue into account. This metric provides insight into how quickly a company is depleting its existing cash reserves and is crucial for capital lifecycle planning and identifying the need for adjustments in financial strategy. By monitoring the gross burn rate, start-ups can take early action to ensure financial sustainability and extend the time until the next financing round or until profitability is reached.