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The Burn Multiple - Bottom Up by David Sacks

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How Startups Should Think About Capital Efficiency

The Burn Multiple How Startups Should Think About Capital Efficiency David Sacks Apr 23, 2020 194 6 Share As the economic crisis deepens, capital efficiency becomes a more pressing issue for startups. Not only is it necessary to maximize runway, it also plays a larger role in how investors evaluate companies. While growth is always prized during good times or bad, investors increasingly scrutinize burn and margins during downturns. Startups whose burn is too high relative to their growth will find it hard to fundraise. Founders should be prepared for this shift in emphasis. This post provides

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