Players Network Inc. (fka PNTV)

[dannyd2012]

Why Does the Burn Rate Matter
There are two good reasons that burn rate matters. The first is that it tells you when you're going to run out of money.

The second is that investors look at a start-up companies burn rate and measure it against future revenues of the company to decide if the company is a worthwhile investment. If the burn rate is greater than forecast or if the company's revenues are not growing as rapidly as they are forecast to grow, then investors may think the company is not a good investment. It may be too risky.

You should calculate watch your burn rate carefully, as many businesses, such as those in technology, may take a long time to find their market and become profitable.