Death Valley Curve

Death Valley Curve

In venture capital, refers to the period before a new company starts generating revenues, when it is difficult for the company to raise money.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Death Valley Curve

An informal term for the period of time between a company's receipt of venture capital financing and its establishment of a secure cash flow. During the death valley curve, the company is unlikely to receive more financing. The term refers to the extremely high probability that the company will fail during the death valley curve.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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Nevertheless, this discussion still lacks the wisdom of Warnes (1991) who is able to refer to a number of actual examples and present his findings with the help of the Death Valley Curve (showing total working capital requirements).