HomeDefinitionsCompareDebt Burn rateThe financial definition for Burn rate:Used in venture capital financing to refer to the rate at which a startup company expends capital to finance overhead costs prior to the generation of positive cash flow. Similar MatchesYield burningYield burningA municipal bond financing method. Underwriters in advance refundings add large markups on US Treasury bonds bought and held in escrow to compensate investors while waiting for repayment of old bonds after issuance of the new bonds. Since bond prices and yields move in opposite directions, when the bonds are marked up, they "burn down" the yield, which may violate federal tax rules and diminishes tax revenues. Click to compare definitions of Burn rate Click to view definitions beginning bu |