Underfunded

Definitions

1. Operating with less capital than the business realistically needs to pursue its plan at an acceptable level of risk. Being underfunded can force discipline, but it can also make good strategy impossible to execute.

   In plain English: Having less money than the business really needs.

   Example: "The company was underfunded for its regulatory ambition and kept postponing critical hires."

Related Terms

• Extended Runway
• External Funding
• Fixed Cost
• Forecasting
• Franchise Model
• Maturity Stage
• Metrics Dashboard
• Burn Down