The Burn Multiple

How Startups Should Think About Capital Efficiency

David Sacks
Craft Ventures
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…

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David Sacks
Craft Ventures

General Partner and Co-Founder of Craft Ventures. Previously: Founder/CEO of Yammer. Original COO of PayPal.