Burn Multiple
Burn Multiple is a metric used to measure the ratio of a startup's generated revenue to the cash spent (burn) on generating that revenue.
This metric is often used by investors to evaluate the financial health of a startup and its potential for future growth.
It is calculated by dividing the revenue generated by the amount of cash burned during the same period.
A high burn multiple indicates that the startup generates more revenue for each dollar spent.
A low burn multiple suggests that the startup may not be using its cash resources as efficiently.