Opportunity Cost

Noun · Startup & VC

Definitions

  1. The value of the best alternative given up when a company chooses one path over another. In startups, opportunity cost is everywhere because time, capital, and attention are all scarce.

    In plain English: What you give up by choosing one option instead of another.

    Example: "The opportunity cost of building that enterprise feature was delaying the self-serve motion by a quarter."

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