Why Benchmarks Matter
Knowing your burn rate is step one. Knowing whether it's reasonable for your stage and industry is step two. A $50K/month burn rate is aggressive at pre-seed but conservative at Series A. Context matters.
Burn Rate Benchmarks by Stage
Pre-Seed ($0-$500K Raised)
| Metric | Low | Median | High |
|---|
| Monthly burn | $5K | $15K | $30K |
| Team size | 1-2 | 2-3 | 4-5 |
| Revenue | $0 | $0-$2K | $5K+ |
| Runway target | 12 months | 15 months | 18 months |
At pre-seed, most spend goes to founder salaries (if any) and basic infrastructure. Keep burn as low as possible — every dollar extends the time you have to find product-market fit.
Seed ($500K-$3M Raised)
| Metric | Low | Median | High |
|---|
| Monthly burn | $25K | $50K | $80K |
| Team size | 3-5 | 5-8 | 8-12 |
| Revenue | $0-$5K | $5K-$20K | $20K+ |
| Runway target | 15 months | 18 months | 24 months |
Seed burn goes primarily to engineering (60-70%) with the rest split between sales, marketing, and operations. If more than 30% of your burn is non-engineering at seed stage, you're spending on the wrong things.
Series A ($3M-$15M Raised)
| Metric | Low | Median | High |
|---|
| Monthly burn | $80K | $150K | $250K |
| Team size | 10-15 | 15-25 | 25-40 |
| Revenue | $30K-$50K | $50K-$100K | $100K+ |
| Runway target | 18 months | 20 months | 24 months |
At Series A, the mix shifts: engineering drops to 45-55% of burn, and sales/marketing grows to 25-35%. You're transitioning from finding product-market fit to proving scalable go-to-market.
Series B ($15M-$50M Raised)
| Metric | Low | Median | High |
|---|
| Monthly burn | $200K | $400K | $700K |
| Team size | 25-40 | 40-80 | 80-120 |
| Revenue | $100K-$200K | $200K-$500K | $500K+ |
| Runway target | 18 months | 24 months | 30 months |
Burn Multiple: The Efficiency Metric
Burn multiple = net burn / net new ARR. It tells you how efficiently you're converting cash into revenue growth.
| Burn Multiple | Rating | What It Means |
|---|
| Under 1x | Excellent | You're generating more ARR than you're burning |
| 1x - 2x | Good | Efficient growth |
| 2x - 3x | Acceptable | Typical for early-stage with high growth |
| 3x - 5x | Concerning | Spending outpacing revenue growth |
| Above 5x | Red flag | Unsustainable without immediate changes |
In the current funding environment, investors expect burn multiples under 2x for Series A+ companies. Pre-seed and seed companies get more latitude because their revenue base is small.
Industry-Specific Benchmarks
| Industry | Median Seed Burn | Notes |
|---|
| B2B SaaS | $50K/month | Lower hosting costs, longer sales cycles |
| Fintech | $65K/month | Compliance and licensing costs add 15-20% |
| Healthcare | $70K/month | HIPAA compliance, longer sales cycles |
| E-commerce | $45K/month | Higher variable costs, lower fixed costs |
| Developer tools | $40K/month | Product-led growth reduces sales cost |
Where Your Money Should Go
Seed Stage Allocation
| Category | Percentage | Example ($50K/month) |
|---|
| Engineering | 60-70% | $30K-$35K |
| Sales/Marketing | 10-15% | $5K-$7.5K |
| Operations | 10-15% | $5K-$7.5K |
| Infrastructure | 5-10% | $2.5K-$5K |
Series A Allocation
| Category | Percentage | Example ($150K/month) |
|---|
| Engineering | 45-55% | $67K-$82K |
| Sales/Marketing | 25-35% | $37K-$52K |
| Operations | 10-15% | $15K-$22K |
| Infrastructure | 5-10% | $7.5K-$15K |
How BurnRateOS Helps
BurnRateOS tracks your burn rate against these benchmarks automatically. The AI CFO Coach flags when your spending deviates from stage-appropriate norms and recommends specific adjustments based on your industry and revenue trajectory.
Benchmark your burn rate →