All terms
Investment & FinanceStartup Lifecycle
Burn Rate
Rate at which a company spends cash, typically expressed monthly.
Reviewed by Christian Espinosa, Founder, Blue Goat CyberLast reviewed May 5, 2026
Definition
Burn rate is the speed at which a company consumes its cash reserves. Gross burn = total monthly operating expenses; net burn = gross burn minus revenue.What this means in practice
Pre-revenue MedTech companies have only gross burn. As commercial sales begin, net burn becomes the meaningful metric.Primary references
3 sourcesLink health: 1 verified 1 bot-blocked 1 needs review· last checked 2026-05-09
Investopedia·1SVB·1PitchBook·1
- 1
Investopedia: burn rateNeeds reviewInvestopediainvestopedia.com
- 2
Silicon Valley Bank - Healthcare ReportsVerifiedSVBsvb.com
- 3
PitchBook - MedTech CoverageBot-blockedPitchBookpitchbook.com
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