The Burn Multiple
How Startups Should Think About Capital Efficiency
Published in
6 min readApr 23, 2020
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As the economic crisis deepens, capital efficiency becomes a more pressing issue for startups. Not only is it necessary to maximize runway, it also plays a larger role in how investors evaluate companies. While growth is always prized during good times or bad, investors increasingly scrutinize burn and margins during downturns. Startups whose burn…