What is burn rate?

Burn rate is a measure of the speed at which a company or project spends its budget or cash over a certain period of time. In the context of product management and monetization, burn rate helps understand how quickly a company is spending money, which is important for financial planning and assessing business sustainability.

For example, if a startup has $100,000 in the bank and a monthly burn rate of $20,000, it means that at current spending levels, the money will last for 5 months. This helps in making decisions about the need for raising investments or optimizing expenses.