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

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.

When the words have to travel

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Sources & evidence · 9

Direct term-level sources and supporting source families.