IFO4
Loading...The rate at which an organisation consumes cash in excess of cash generated, typically expressed as a monthly figure. Burn rate is the operational input to runway and is the dominant short-term efficiency measure for pre-profit organisations. The federation distinguishes gross burn from net burn and requires both to be reported with consistent definitions across periods. Material month-on-month burn changes are footnoted with the operational drivers identified. Burn rate computed on a non-cash basis is rejected as inadmissible federation evidence.
An industrial accounting term repurposed by Silicon Valley venture practice in the 1990s; the metaphor draws on the rate of fuel consumption.
Federation members publish gross and net burn monthly. Burn variations greater than fifteen percent month-on-month are footnoted with operational drivers under MEV-Annex:4.1. Burn rate is a quarterly input to the IFO4 Score.
@misc{ifo4_glossary_burn_rate,
title = {{Burn Rate}},
author = {{IFO4 Federation Editorial Board}},
howpublished = {{IFO4 Federation Glossary, slug \texttt{burn-rate}}},
year = {2026},
url = {https://ifo4.org/glossary/burn-rate},
note = {Category: Capital; key: BurnRate}
}Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.