The term "death valley curve" relates to the high probability that a start up firm will cease to exist before a steady stream of revenues is established. Many firms receiving their first round of seed financing often incur high initial costs. Premises are leased or built, staff are hired, technology acquired and operating costs are incurred. Meanwhile, the firm is not earning positive cash flow to remain viable. It is imperative a firm effectively manage the business through the death valley curve. If not it will cease to exist.
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