A startup spending $30,000 monthly on staff salaries, office space, and a cool new ping pong table would have a gross burn rate of $30,000 per month.
If your burn rate grows faster than your anticipated revenue, most investors will find it risky to fund your startup.
Building an MVP first and testing the waters before going “all in” is a great strategy for avoiding unnecessary expenses that might skyrocket your burn rate.
During his new pivoting he started the extra low burnout mode successfully.