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Most Startups Don’t Track Burn Rate Correctly, K-38 Consulting Finds
- K-38 Consulting says nearly three in 10 startups fail after running out of money, often because of incorrect burn-rate calculations rather than excessive spending.
- The firm warns that using profit-and-loss figures instead of actual cash movement can lead startups to miscalculate burn rate.
- K-38 Consulting identifies confusing revenue with collections, missing irregular expenses, and outdated runway projections as financial risks.
- The firm recommends tracking gross and net burn, using rolling averages, and recalculating runway each month.
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31 Articles
31 Articles
The Daily Advance+30 Reposted by 30 other sources
Most Startups Don’t Track Burn Rate Correctly, K-38 Consulting Finds
Coverage Details
Total News Sources31
Leaning Left2Leaning Right2Center22Last UpdatedBias Distribution84% Center
Bias Distribution
- 84% of the sources are Center
84% Center
C 84%
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