
How I learned to stop worrying and love working capital - rmason
https://medium.com/@EAgarwal/how-i-learned-to-stop-worrying-and-love-working-capital-39917e86041d
======
perl4ever
"High growth startups play between 1–3x. In theory, in a world of zero cost of
capital, unlimited liquidity, and an infinite market size, any LTV/CAC greater
than 0 is perfectly acceptable."

I don't understand how a ratio between 0 and 1 can be acceptable. If it's
under 1, aren't you losing money in the long run?

------
mmt
This is the sort of startup advice article I wish there were more of (though
I've never been a founder myself).

It points out how the "obvious" reaction to an impending cash flow problem at
a high-growth startup might be undesirable, but, more importantly, how an
alternative is better and how it was implemented.

