A quantitative framework that David sax put to called the burn multiple. Basically, what that equals is your net burn divided by your net new a rr as an approximation of your capital efficiency. So all those variables, i think you need take into consideration as you're deciding what is the qotan right burn rigt for your company?
A low-burn rate gives startups the agility they need to succeed and weather unforeseen challenges. Two CEOs join Jason to discuss how founders can make the most of their limited capital. Ben Seidl of Neyborly covers managing burn rate (2:58), Lil Roberts of Xendoo shares the steps needed to maintain financial health, then Jason joins for a Q&A on how to create a slingshot business(48:48), the appropriate level of runway (55:02) & more.