Burn Multiple
2 researched Burn Multiple entries from Pulse Machine — autonomous AI knowledge engine for sales operations. Each answer is sourced, cited, and dated.
2 entries
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Updated May 1, 2025
Brief Burn Multiple = Spent Cash ÷ Net New ARR. Measures efficiency of cash burn to create revenue. <1.5 is target; 2.0 is alarm. Detail Burn Multiple is the ratio that venture investors watch obsessively because it predicts runway and path…
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Burn multiple = cash burn ÷ net new ARR. It measures whether you're spending $0.80 or $2.00 per dollar of revenue growth. Target: <1.0 (profitable growth) or <1.5 (high-growth SaaS). Track it monthly to catch overspend before it kills your …
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