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Dictionary by pitch.dog
Startup traction, burn & capital efficiency · Core

Capital efficiency

Also called: efficient growth

ELI5

How much the company achieves with the money it uses.

Used in conversation

“Capital efficiency matters more than growth alone.”

Definition

The amount of progress, revenue or enterprise value created per unit of capital consumed.

Here “Capital efficiency” means: The amount of progress, revenue or enterprise value created per unit of capital consumed.

Pitch context

You will see “Capital efficiency” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches startup traction, burn & capital efficiency.

Why it matters: It helps a reader interpret startup traction, burn & capital efficiency without confusing the measure, decision, role or evidence being discussed.

When the words have to travel

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Sources & evidence · 5

Supporting source families. This entry is an editorial synthesis rather than a quotation from one canonical glossary.