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The rate at which a new company or
venture spends its capital while waiting for profitability. Most internet
start-up companies became well acquainted with this term, which was widely
used as an indicator of their likely lifespan. Routinely burning money
faster than they could earn it, few of them are still around to try to
increase it. The dotcom with the most highly publicised burn rate, fashion retailer boo.com, spent $135m of investment capital between
its inception in 1998 and its closure in 2000, while accumulating millions
of dollars of additional debt. |
