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Date Posted: 11:00:55 01/17/03 Fri
Author: J.Fred
Subject: Burn rate

Hi Dr. D
I needed a little more clarity on the burn rate so I looked it up. This is what I found: burn rate deals with venture capital financing, it's the rate at which a start-up company spends capital to finance overhead before generating a positive cash flow from ops. Then, I was confused about venture capital so I looked that up as well: VC is a good source of financing for start-up co.; includes risks, but offers above avg future profits. Is this correct?

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