Gross burn
Also called: gross cash burn
ELI5
All the cash spent in the period.
Used in conversation
“Gross burn helps explain the cost base.”
Definition
Total cash operating outflows over a period before cash inflows are considered.
Here “Gross burn” means: Total cash operating outflows over a period before cash inflows are considered.
Pitch context
You will see “Gross burn” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches startup traction, burn & capital efficiency.
Why it matters: In startup traction, burn & capital efficiency, different calculation boundaries, periods or accounting treatments can change the number and the decision.
Caution
Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.
Sources & evidence · 9
Direct term-level sources and supporting source families.
- IFRS Foundation — IFRS GlossaryDirect source · primary · checked 2026-08-16
- U.S. Small Business Administration — Break-even pointDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Small Business Capital Formation GlossarySupporting source family · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Exempt OfferingsSupporting source family · primary · checked 2026-08-16
- National Venture Capital Association — Model Legal DocumentsSupporting source family · institutional · checked 2026-08-16
- Y Combinator — Safe financing documentsSupporting source family · practitioner · checked 2026-08-16
- Y Combinator — Series A Term Sheet TemplateSupporting source family · practitioner · checked 2026-08-16
- Financial Accounting Standards Board — FASB Accounting Standards CodificationSupporting source family · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Non-GAAP Financial Measures — Compliance and Disclosure InterpretationsSupporting source family · primary · checked 2026-08-16