Net burn divided by net new ARR over a period. A burn multiple below 1.0 is excellent; 1.0–2.0 is good; above 3.0 signals capital inefficiency. Zoe tracks burn multiple continuously rather than as a point-in-time diligence question, surfacing drift before the next board meeting.
Burn multiple measures capital efficiency and runway quality. A burn multiple above 3.0 means the company is spending more than three dollars to acquire one dollar of new ARR — unsustainable at any stage. Below 1.0 signals true product-market fit: the business funds its own growth. Investors watch burn multiple continuously because it predicts cash runway crises months before the balance sheet shows stress, and it reveals spending discipline or dysfunction in the executive team.
Zoe calculates burn multiple from QuickBooks or accounting integration: net monthly burn divided by net new ARR in the same period. It sits under the Financial Vitality dimension at 25% weight. Zoe tracks burn multiple monthly rather than as a single point-in-time metric, surfacing drift in spending discipline or growth efficiency before the next board meeting.
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