Understanding Burn Multiples
Venture capitalists judge startups strictly on their Burn Multiple (Net Burn divided by Net New ARR). A multiple under 1.5x is considered elite for growth-stage SaaS.
Evaluate capital efficiency by dividing net cash burn by net new Annual Recurring Revenue (ARR).
Venture capitalists judge startups strictly on their Burn Multiple (Net Burn divided by Net New ARR). A multiple under 1.5x is considered elite for growth-stage SaaS.