flywheel
/ˈflaɪ.wiːl/
Definition
A self-reinforcing business model where success in one part of the operation generates resources that fuel growth in other parts, creating a momentum-building cycle.
Etymology
Originating in the 19th century, the term combines 'fly' (in the sense of a rotating component) and 'wheel'. It refers to a mechanical device used in engines to store rotational energy and smooth out power delivery, a metaphor later adopted in business management to describe self-sustaining momentum.
In the news
In the article, the 'flywheel' refers to Orange Juice’s strategy of using cash flow from acquired businesses to buy Bitcoin, which in turn boosts the company's valuation to help fund further acquisitions. If the cycle breaks—such as if Bitcoin loses value or the company's stock loses its premium—the entire growth model stalls.
This Bitcoin-backed company is betting retiring founders will swap private stock for their life’s work
Read the full article ↗CryptoSlate