CFO & Startup Finance Glossary
Every finance term a startup founder encounters — from a first board deck to a Series A close — defined in one place. Each entry links to the free CFO tool that produces the number, so you can move from definition to answer in under five minutes.
Burn rate
The amount of cash a company spends per month, typically split into gross burn (total monthly outflow) and net burn (gross burn minus revenue). The number drives every runway calculation. Compute yours with the Burn Rate Calculator.
Runway
The number of months a company can operate at its current burn rate before cash runs out. Runway is calculated as cash on hand divided by monthly net burn. Output of the Cash Flow Forecaster.
Cash flow forecast (13-week forecast)
A 13-week, week-by-week projection of inflows and outflows used by operations teams to anticipate cash needs and by boards to monitor liquidity risk. Generate yours with the Cash Flow Forecaster.
Cash flow intelligence
AI-driven analysis of cash position that goes beyond a static forecast — anomaly detection, scenario modeling, and CFO action plans. See the 12-month view with the Cash Flow Intelligence tool.
Fundraise readiness
A pre-raise scorecard of the metrics investors diligence first — ARR growth, burn multiple, NRR, and gross margin. Score your startup in under five minutes with the Fundraise Readiness score.
Financial health scorecard
A composite scoring of a startup's financial position across runway, burn efficiency, revenue per head, and growth signal. Run yours with the Financial Health Scorecard.
Board deck
A standardized slide presentation given to a board of directors at quarterly meetings, covering KPIs, financial summary, and strategic narrative. Generate one with the Board Deck Generator.
Budget variance
The difference between budgeted and actual results on a specific line item or category. Variance analysis is the backbone of monthly close. Surface it line by line with the Budget Variance Report.
ARR (Annual Recurring Revenue)
Annualized value of recurring subscription contracts, normalized to a one-year value. The headline growth metric for SaaS startups and the primary diligence target in seed and Series A rounds.
MRR (Monthly Recurring Revenue)
The monthly version of ARR. MRR × 12 approximates ARR for steady-state subscription businesses and is what most early dashboards track month-to-month.
Net Revenue Retention (NRR)
The percentage of recurring revenue retained from existing customers over a year, including expansion, contraction, and churn. NRR above 100% means existing customers grew net of churn. One of the four metrics in the Fundraise Readiness score.
Gross margin
Revenue minus cost of goods sold, expressed as a percentage of revenue. SaaS gross margins typically run 70–90%; agency and services businesses typically run 30–50%. Lower margins justify higher burn multiples in fundraising.
Burn multiple
Net cash burned in a period divided by net new ARR added in the same period. A burn multiple under 1.5x is broadly considered capital-efficient; over 3x triggers investor scrutiny. Score it inside the Fundraise Readiness tool.
LTV:CAC (Lifetime Value to Customer Acquisition Cost)
The ratio of how much a customer is worth over their lifetime to how much it cost to acquire them. A 3:1 LTV:CAC is the conventional floor for a healthy SaaS business. Below 1:1 means each sale loses money.
AR aging (Accounts Receivable aging)
A breakdown of outstanding customer invoices by how long they have been due — typically 0–30, 31–60, 61–90, and 90+ days. Aging reports are surfaced in the Cash Flow Intelligence weekly briefing.
Missed a term? Email us and we'll add it to the glossary and link it to the tool that produces the number.