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WELCOME TO ISSUE NO #019

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📆 Today’s Rundown

Hey 👋, in the last issue, we discussed Why AI is reshaping FP&A, but today, we're diving into the top Burn Multiple uses You can't afford to ignore.

Newsletter highlights

1. 3 reasons why tracking burn multiple matters 🤟

2. Burn Multiple Stat of the Week 🔢

3. CFO Tool of the Week 📊

4. Latest Week Content Update 🆓

3 Reasons Why Tracking Burn Multiple Matters

1. It reveals your startup's financial efficiency

   Are you spending money wisely?

   Burn multiple, calculated as net burn divided by net new ARR, provides a clear picture of how efficiently your startup is using cash to generate revenue.

   A lower burn multiple indicates more efficient growth, which is crucial for sustainable business development.

2. It helps identify overspending

   Tracking your burn multiple quarterly rather than monthly gives a more accurate view of your financial health.

   It helps you spot patterns and identify if your startup is burning cash faster than it's growing, which is a red flag for both management and investors.

3. It’s a valuable benchmark for investors

   Investors pay close attention to burn multiple.

   A low burn multiple signals that your startup is capital efficient and likely has achieved product-market fit.

   These are key factors that investors look for when considering funding opportunities.

Burn Multiple Stat of the Week

1.7x

The median burn multiple for SaaS companies with $1-3M in ARR is 1.7x, meaning these companies typically burn $1.70 for every $1 in new ARR generated.

CFO Tool of the Week

Visible

Visible is a platform designed to help startups efficiently manage investor relations by providing tools to track key metrics like burn multiple, ARR, and other financial performance indicators.

It offers:

1. KPI Tracking: Easily monitor important metrics like burn multiple and ARR in real time.

2. Investor Updates: Streamline communication with investors by sending regular updates that include key financial metrics and insights.

3. Custom Dashboards: Create customized dashboards to visualize your startup's financial health and share them with stakeholders.

What I like most about this tool is its ability to bring transparency and clarity to financial performance, making it easier for startups to communicate with investors and make informed decisions.

Latest week content update

Here is the latest week content which

Catch you in the next issue.

— Aleksandar Stojanovic