‘Ramen Profitability’ is a new phrase that has been included in the dictionary of startup ecosystem. The term is derived from the instant noodles of ‘Ramen Noodles’. The individual behind this concept is none other than Paul Graham, an entrepreneur and venture capitalist. The basic significance is the startups phase where the founders make money just enough to survive. This means that the startup companies here are not really profitable. It lacks the actual value. The company sustains for a certain amount of time without raising money.

If the startup company is losing out more money then it is advisable to shut down and start on something new. The hope for ‘Ramen Profitability Startups’ is that it motivates the company to transform to a big scale of business and raise money eventually. The company is guaranteed with more time to explore and experiment. It offers more opportunities to strive for success in business.