What is Burn Multiple?
Burn Multiple is defined as: Net cash burned divided by net new ARR generated in the same period. Measures capital efficiency of portfolio companies — a multiple below 1.5x is considered healthy.
What data source is used to measure Burn Multiple?
Burn Multiple is typically measured using data from a Portfolio Company Financials / Board Packs. This system of record provides the transactional and operational data required to calculate and monitor this metric accurately and in real time.
Typical Data SourcePortfolio Company Financials / Board Packs
Which industries track Burn Multiple?
Burn Multiple is a key performance indicator used across the following sectors:
How does Firehawk Analytics measure Burn Multiple?
Firehawk Analytics connects directly to your Portfolio Company Financials / Board Packs and delivers a live Burn Multiple dashboard. Configuration is completed within 48 hours — no data analyst required on your team.