Startups Stack Exchange Archive

Is there a break-even point in a startup’s Cash Flow growth curve?

• posted by: Dawny33 on 2015-10-20
• tagged: marketing, investment, growth, metrics, user-acquisition
• score: 1

In the Cash-Flow curve of a startup(acquisition phase), is there a break-even point?

Is there a point which stands for an optimal number of customers per month? Or should it be decided solely on the investment available?

Larger the number of customers, the trough would be deeper, but still the growth curve would be much steeper(assuming constant retention). But, is there a point in the trough which says “enough acquisition”?

Answer 7615

• posted by: Dawny33 on 2015-10-21
• score: 0

After a nice discussion and from @Mruf's comment, I seem to have the answer.

The break even point is just the point when your cash flow exactly equals the expenses(costs) of the company.

Or should it be decided solely on the investment available?

Yes indeed, it is solely decided by the investment available. So, the trough's depth is directly dependent on the investment available with the company.

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