IRS_02Investor Readiness System™ 2–3 weeks

    Burn & Runway Discipline

    Quantify burn quality — not just how much you spend, but how much growth each rupee buys — and extend runway with intent.

    Why it matters

    Investors price your next round on Burn Multiple and Net Burn Efficiency, not just runway months. This module installs the burn-quality engine that proves every rupee compounds.

    Scope covered

    Net burn vs gross burn separation
    Burn Multiple (Sacks) — net burn / net new ARR
    Revenue-per-burn benchmark vs sector cohort
    Runway scenario plan (base / bull / bear)
    Burn-efficiency improvement roadmap
    Default-alive vs default-dead test (PG)
    Quarterly burn review ritual with board
    How we run it

    Our methodology

    A senior-led delivery sequence — not a template dump. Each phase is operated with your team and external counsel, not handed over as a deck.

    1. 1

      Burn baseline

      Week 1

      Separate gross vs net burn, normalise one-offs and cohort the burn by function so every rupee is attributable.

    2. 2

      Burn Multiple & efficiency benchmark

      Week 1–2

      Compute Burn Multiple (Sacks) and revenue-per-burn against sector cohort; locate the company on the efficient-frontier curve.

    3. 3

      Runway scenarios

      Week 2

      Build base / bull / bear runway with sensitivity to growth, hiring and opex; lock the floor that triggers action.

    4. 4

      Default-alive test & lever ranking

      Week 2–3

      Run the PG default-alive test by quarter; rank cost & growth levers by ROI × speed × reversibility.

    5. 5

      Quarterly burn ritual

      Week 3

      Install the quarterly burn-quality review with the board — agenda, scorecard, decisions log.

    Deliverables

    • Burn rate & burn-multiple monthly pack
    • Revenue-per-burn benchmark report
    • Runway scenario plan
    • Burn-efficiency improvement roadmap

    KPIs & Targets

    • Burn Multiple<1.5 (great), <2 (good)
    • Runway floor≥18 months post-raise
    • Default-alive statusTrue within 24 mo

    Stakeholders

    CFOCEOBoardDepartment Heads

    Timeline

    2–3 weeks