burning through capital

USAGE SUMMARY

The phrase "burning through capital" is correct and usable in written English.
It can be used in financial contexts to describe the rapid depletion of funds or resources, often in a business or investment scenario. Example: "The startup is burning through capital at an alarming rate, which raises concerns about its long-term sustainability."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

1 human-written examples

Gupta told us that it has kept margins low and is "close to profitability" thanks to its thrift — that's in stark contrast to India's most prominent internet startups, which are burning through capital.

TechCrunch

Human-verified similar examples from authoritative sources

Similar Expressions

59 human-written examples

Kozmo, which offered free deliveries within an hour, flamed out spectacularly in 2001 after burning through $280 million in capital.

TechCrunch

The site was originally launched in July 2005 and was shut down in 2007 after burning through $10.5 million in capital.

TechCrunch

The 26-year-old who invented Tumblr is currently burning through $125m of venture capital in his quest to make Tumblr, at some point, make money.

BBC

It's about Amp'd Mobile, the too-hip-for-its-own-good virtual mobile carrier that filed for bankruptcy last June after burning through $360 million in capital.

TechCrunch

After burning through $280 million in venture capital, they called it quits in early 2001.

TechCrunch

Founding CEO Rob Lord left the company earlier this year after burning through $8 million in venture capital from Sequoia Capital and Atlas Ventures.

TechCrunch

In the race to build billion-dollar businesses, companies lose sight of their customers and crash more readily, after burning through large amounts of capital.

TechCrunch

Editor's note: The following guest post was written by Ashkan Karbasfrooshan, founder and CEO of WatchMojo.You can also read his series on the state of Online video (Parts I, II, III, and IV) video.. Yesterday's final implosion of video site Veoh, which declared bankruptcy after burning through $70 million of venture capital, was a long time coming.

TechCrunch

Ride-hailing is characterized by fierce competition and firms burning through obscene amounts of venture capital in an effort to reach scale.

Harvard Business Review

Last fall, the company laid off more than a third of its employees after burning through more than $40 million in venture capital.

The New York Times - Tech

Expert writing Tips

Best practice

When using "burning through capital", ensure the context clearly indicates a rapid and potentially unsustainable rate of spending. Quantify the rate if possible to emphasize the severity.

Common error

Avoid using "burning through capital" to describe general spending. This phrase implies a rate of expenditure that is faster than income, and is likely unsustainable in the long term. Using "spending capital" or "investing capital" might be more appropriate.

Linguistic Context

The phrase "burning through capital" functions as a descriptor of financial management, specifically highlighting the rate at which a company or entity is spending its available funds. As indicated by Ludwig, it often implies a rapid and potentially unsustainable expenditure.

Expression frequency: Uncommon

Frequent in

News & Media

60%

Formal & Business

30%

Science

10%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, "burning through capital" is a phrase used to describe the rapid depletion of financial resources, typically in a business or investment context. As Ludwig AI confirms, the phrase is grammatically correct and usable in written English. The phrase is most commonly found in news and business contexts, conveying a sense of urgency or concern regarding financial sustainability. While there are several alternatives, such as "depleting funds rapidly" or "exhausting financial resources", "burning through capital" specifically suggests a fast and potentially unsustainable rate of expenditure. Ensure that the context justifies the use of this phrase to accurately reflect the financial situation being described.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

depleting funds rapidly

This alternative highlights the quick reduction of funds, maintaining a similar sense of urgency.

exhausting financial resources

Focuses on the complete consumption of available financial resources.

dissipating capital quickly

Emphasizes the rapid and perhaps wasteful nature of the expenditure.

spending capital lavishly

Highlights the extravagant aspect of the spending.

wasting venture capital

Specifically points to the squandering of venture capital investments.

blowing through cash reserves

Emphasizes that a company is exhausting its money reserves.

running out of funds

A more straightforward way to describe the depletion of money.

consuming capital at a high rate

Focuses on the rate at which the capital is being used.

expending capital rapidly

A more formal alternative emphasizing the rapid expenditure.

liquidating assets quickly

Highlights the rapid conversion of assets into cash, suggesting potential financial distress.

FAQs

What does "burning through capital" mean in business?

In a business context, "burning through capital" refers to a company spending its available funds, especially venture capital, at a rapid and often unsustainable rate. It indicates that the company's expenses are significantly exceeding its income.

What are some signs a company is "burning through capital"?

Signs include rapidly decreasing cash reserves, continuous fundraising rounds, frequent layoffs despite ongoing operations, and a lack of profitability despite high revenue. Companies "depleting funds rapidly" may face financial difficulties if they do not adjust their spending habits.

What can a company do to stop "burning through capital"?

A company can implement cost-cutting measures, improve revenue generation, seek additional funding, or restructure its business model to achieve profitability. It may also need to reassess its growth strategy and prioritize sustainable practices over rapid expansion.

Is "burning through capital" always a bad thing?

While often negative, "burning through capital" can be acceptable during initial growth phases when a company is heavily investing in infrastructure, marketing, and product development. However, it's crucial to have a clear path to profitability and a plan to eventually achieve financial sustainability. Otherwise, the company risks "exhausting financial resources".