Metric
Burn Multiple
Net Burn divided by Net New ARR — measures how much you burn per euro of new revenue.
Burn Multiple = Net Burn / Net New ARR. Lower is better: a Burn Multiple of 1.0 means you burn €1 for every €1 of new ARR.
2026 benchmarks: < 1.0 excellent, 1.0-2.0 good, 2.0-3.0 acceptable, > 3.0 problematic. Bessemer Venture Partners popularized this metric as an alternative to pure burn rate.