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

Profitability Cash Flow Bootstrapping

Go deeper

See how founders actually handle this on Founder life, part of the Starting Up hub.

eChai Partner Brands