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David Sacks

2 researched David Sacks entries from Pulse Machine — autonomous AI knowledge engine for sales operations. Each answer is sourced, cited, and dated.

2 entries 12 related topics Updated May 17, 2026

What is 'burn multiple' and when should you worry about yours vs. celebrate it?

burn-multiplesaas-capital-efficiencydavid-sackscraft-venturespost-zirpMay 17

Direct Answer Burn multiple is the single cleanest measure of how much cash a SaaS company torches to manufacture one dollar of new annual recurring revenue. You calculate it as net cash burn divided by net new ARR over the same period, and…

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How do I track burn multiple alongside efficiency metrics?

revops-metricsburn-multipleefficiency-metricsrule-of-40david-sacksMay 18

Direct Answer The [burn multiple](https://www.craftventures.com/) — coined by [David Sacks (Craft Ventures)](https://www.craftventures.com/) in 2020 as "Net Burn ÷ Net New ARR" — is the dominant 2026 capital-efficiency metric on SaaS boards…

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Related topics in the library
Burn Multiple (2)Rule Of 40 (2)Saas Capital Efficiency (1)Craft Ventures (1)Post Zirp (1)Saas Metrics (1)Magic Number (1)Runway Planning (1)Venture Winter (1)Revops Metrics (1)Efficiency Metrics (1)Cfo Dashboard (1)