Burn Rate
Definition
How much money your company spends each month. If you have $600K and burn $50K/month, you have 12 months of runway. Keeping burn rate manageable is crucial for survival.
Related terms in Funding
All 100 terms →Bootstrapping
Building a company using only personal savings and revenue—no outside investment. Bootstrapped founders maintain full control but grow more slowly.
Angel Investor
A wealthy individual who invests their own money in early-stage startups, typically writing checks from $10K to $250K. Angels often provide mentorship alongside capital.
Venture Capital (VC)
Professional investors who manage funds from institutions and wealthy individuals, investing in high-growth startups. VCs typically invest larger amounts and expect significant returns.
Seed Round
The first significant round of funding, typically $500K to $3M, used to prove the concept works and find initial product-market fit.
Series A
The first major institutional round, typically $5M to $20M. At this stage, you should have proven the business model and be ready to scale.