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Definition of 'Critical Mass'
A very important or crucial stage in a company's development, where the business activity acquires self-sustaining viability. When a company reaches critical mass, it is thought that they can remain viable without having to add any more investment.
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Investopedia explains 'Critical Mass'
This term is derived from nuclear physics, where critical mass is defined as the smallest mass of material that can sustain a nuclear reaction at a constant level. When compared to the financial definition, we see the similarities – being self-sustaining is the goal.
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