CapEx (Capital Expenditure)

Understanding CapEx (Capital Expenditure)

Capital Expenditure (CapEx) refers to the funds that a company uses to acquire, upgrade, or maintain physical assets such as property, industrial buildings, or equipment. For startups, CapEx investments are critical for scaling operations, improving infrastructure, or launching new projects. These expenditures are often long-term investments that can help generate future revenue.

Examples of CapEx

• Purchasing Equipment: Acquiring machinery or technology for production.
• Building or Renovating Facilities: Expanding office space or upgrading warehouses.
• Investing in Technology: Upgrading software or hardware to improve business efficiency.

Related Terms and Concepts

Operating expenditure (OpEx), asset management, depreciation, investment