Glossary

Customer concentration

How much of your revenue depends on your largest few customers.

If one customer is forty percent of revenue, you do not have a business with a risk attached; you have one customer and some others. Their renewal decision is your survival decision.

Investors ask about it early because it is a question of fragility, not of size, and because it is the sort of thing a deck reliably omits. Volunteering it is worth more than hoping it goes unasked.

Related terms

  • ChurnThe share of customers, or of revenue, that leaves in a period.
  • TractionEvidence that people want this, stated in numbers rather than adjectives.

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