VC Rehan Yar Khan says cash burn is a well thought-out business strategy

This is what Rehan Yar Khan, Managing partner, Orion Venture Partners had to say when he was asked should entrepreneurs burn cash to grow a company?

“Cash burn is a well thought-out business strategy. You’re doing it for a reason; for an expected outcome. And it’s board-sanctioned and approved. It’s not a crazy entrepreneur who is running around and doing it. At a company where I was a board member, there was a heated debate on the rate of growth. Some of the more conservative investors wanted the company to grow slower, while others wanted it faster and to burn more [cash]. There are different points of view of very well-educated and thoughtful people for various markets.”.

— As discussed during a panel discussion organised by Indian Venture Capital Association.