Burn Rate Cost Software Development 
Startup Professionals Musings
JANUARY 28, 2011
Your burn rate is the rate at which that money is being spent, and allows an estimate of how long you can go before refueling (runway). Investors look at your burn rate to see how efficient and effective you are at running the business. For obvious reasons, you need to keep your burn rate low.
Startup Professionals Musings
FEBRUARY 21, 2012
Your burn rate is the rate at which that money is being spent, and allows an estimate of how long you can go before refueling (runway). Investors also look at your burn rate to see how efficient and effective you are at running the business. For obvious reasons, you need to keep your burn rate low.
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Startup Professionals Musings
FEBRUARY 5, 2010
Your burn rate is the rate at which that money is being spent, and allows an estimate of how long you can go before refueling. Investors look at your burn rate to see how efficient and effective you are at running the business. For obvious reasons, you need to keep your burn rate low. Great strategy.
Steve Blank
NOVEMBER 2, 2009
In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) Sales people cost money, and when they’re not bringing in revenue, their wandering in the woods is time consuming, cash-draining and demoralizing. Who recommends a sale?
Up and Running
APRIL 22, 2020
Maintaining your business through the coronavirus crisis has likely led you to cut costs, revise your sales projections, and potentially seek out a loan to help you stay afloat. Second, if a requested loan is below a certain amount, depending on the size of the lender, the cost to service that loan is too high to make it worth it for them.
Transformify
AUGUST 27, 2017
Their investors may push them into that direction too, as the high burn rate is often seen as a prerequisite for high growth. You don’t have the right people on board, you are burning cash and the work is not done, at its worst, your product is already live and you are losing clients due to software bugs and poor user experience.
Startup Professionals Musings
SEPTEMBER 29, 2018
Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall. It doesn’t take a financial genius to recognize that you need to keep your burn rate low. Cash flow out equates to burn rate, and the runway depends on your reserves.
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