Business Pitch Dictionary by pitch.dog
Startup traction, burn & capital efficiency · Working

Burn multiple

Also called: burn efficiency multiple

ELI5

Cash burned for each unit of new recurring revenue.

Used in conversation

“The burn multiple improved below two.”

Definition

Net burn divided by net new recurring revenue over the same period, used as a rough capital-efficiency measure.

Here “Burn multiple” means: Net burn divided by net new recurring revenue over the same period, used as a rough capital-efficiency measure.

Pitch context

You will see “Burn multiple” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches startup traction, burn & capital efficiency.

Why it matters: It helps a reader interpret startup traction, burn & capital efficiency without confusing the measure, decision, role or evidence being discussed.

Sources & evidence · 5

Supporting source families. This entry is an editorial synthesis rather than a quotation from one canonical glossary.