[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"glossary-burn-multiple::en":3,"gloss-cluster-burn-multiple::en":26,"gloss-next-burn-multiple::en":9},{"slug":4,"category":5,"name":6,"definition":7,"meta_desc":8,"faq":9,"schema_markup":9,"related":10},"burn-multiple","saas","Burn Multiple","Burn multiple is a capital-efficiency metric popularized by David Sacks: net cash burn divided by net new ARR over the same period. If you burned $2M in a quarter and added $1M of net new ARR, your burn multiple is 2 — you spent two dollars to generate each dollar of new recurring revenue. Lower is better. It answers the question investors and disciplined founders actually care about: how much cash are you consuming to grow? Unlike growth rate alone, it can't be flattered by spending recklessly, because the spending is the denominator's context. Rough benchmarks: under 1 is excellent, 1–1.5 is good, above 2 signals inefficient growth that gets punished in tight funding markets. For bootstrappers, the same discipline applies even without VC — a high burn multiple means you're buying growth you can't sustain. Track it quarterly alongside net revenue retention to see whether efficiency is improving or decaying as you scale.","Burn multiple divides net cash burn by net new ARR: burn $2M to add $1M and it's 2. Lower is better, and investors read it as capital efficiency.",null,[11,14,17,20,23],{"slug":12,"name":13},"cac","Customer Acquisition Cost (CAC)",{"slug":15,"name":16},"net-revenue-retention","Net Revenue Retention (NRR)",{"slug":18,"name":19},"payback-period","CAC Payback Period",{"slug":21,"name":22},"quick-ratio","SaaS Quick Ratio",{"slug":24,"name":25},"rule-of-40","Rule of 40",[27,31,35,38,41,44,47,51,54,57,58,61],{"slug":28,"category":5,"name":29,"updated_at":30},"activation","Activation","2026-08-24T02:46:36+00:00",{"slug":32,"category":5,"name":33,"updated_at":34},"aha-moment","Aha Moment","2026-08-24T02:46:37+00:00",{"slug":36,"category":5,"name":37,"updated_at":34},"annual-contract-value","Annual Contract Value (ACV)",{"slug":39,"category":5,"name":40,"updated_at":30},"api-first","API-First",{"slug":42,"category":5,"name":43,"updated_at":30},"arpa","Average Revenue Per Account (ARPA)",{"slug":45,"category":5,"name":46,"updated_at":30},"arr","Annual Recurring Revenue (ARR)",{"slug":48,"category":5,"name":49,"updated_at":50},"auto-renewal-clause","Auto-Renewal Clause","2026-08-24T02:46:38+00:00",{"slug":52,"category":5,"name":53,"updated_at":50},"build-vs-buy","Build vs. Buy",{"slug":55,"category":5,"name":56,"updated_at":50},"burn-rate","Burn Rate",{"slug":12,"category":5,"name":13,"updated_at":30},{"slug":59,"category":5,"name":60,"updated_at":30},"cdn","Content Delivery Network (CDN)",{"slug":62,"category":5,"name":63,"updated_at":30},"churn","Churn"]