"Burn rate" is the net cash a startup spends each month (expenses minus revenue). Burn rates vary enormously by stage, team size, and location — but some benchmarks help founders calibrate whether their spending is appropriate.
Typical monthly burn rates by stage
| Stage | Team Size | Typical Monthly Burn |
|---|---|---|
| Pre-seed / solo | 1–2 people | $5k–$25k |
| Seed | 3–8 people | $50k–$200k |
| Series A | 10–25 people | $200k–$600k |
| Series B | 25–60 people | $500k–$2M |
| Series C+ | 60+ people | $1M–$5M+ |
These are wide ranges. Fully-remote teams with experienced founders spend 30–50% less than SF/NYC-based teams with equivalent headcount.
Burn multiple — the VC efficiency metric
Burn multiple = Net cash burned ÷ Net new ARR. It measures how efficiently you're converting cash into revenue growth:
- Under 1×: Exceptional (every dollar burned produces more than a dollar of ARR)
- 1–1.5×: Good (Series A/B standard)
- 1.5–2×: Acceptable
- Above 2×: Concerning (review spending vs growth tradeoffs)
The 18-month rule
Most experienced startup advisors recommend maintaining at least 18 months of runway at all times. This gives you enough time to either raise a new round or achieve profitability if fundraising conditions worsen.
Use our Runway Calculator to calculate your exact runway and model different burn scenarios.