Cash Cow
A product or business that reliably generates strong, steady profit with little further investment, whose cash can fund other, riskier bets.
Why it matters
A cash cow can bankroll a startup's growth or new experiments without raising outside money, a powerful position. Recognizing when part of your business has become one, and deploying its cash wisely, is a strategic advantage.
For example
A company's mature first product throws off steady profit with little new investment, a cash cow that funds its riskier new bets.
Related terms
Also in Starting Up
See how founders actually handle this on Founder life, part of the Starting Up hub.
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