What is Hockey Stick Growth?
Hockey Stick Growth is the ubiquitous visual representation of a successful startup's user or revenue growth trajectory. It refers to a graph that starts relatively flat (the "handle") and then bends sharply upward in an exponential curve (the "blade").
This pattern is the ultimate goal of any venture-backed company, as it demonstrates scalability—the ability to grow revenue faster than costs.
The Two Phases The two distinct sections of the graph correspond to key phases in a startup's life:
- The Handle (Product-Market Fit Search): This initial flat period is when the company is small, iterating the product, figuring out its messaging, and struggling to retain users. Growth is slow, expensive, and linear.
- The Blade (Scaling): The sharp, near-vertical climb occurs once the company achieves Product-Market Fit (PMF). The product is working, users are retained, and the startup has found a repeatable, scalable distribution channel (like virality, low CAC, or high sales velocity).
The Inflection Point The point where the handle meets the blade is the inflection point. This is the evidence investors look for: proof that the company has moved past the struggle of finding a market and is ready to enter the costly, high-risk, high-reward phase of rapid expansion.
Key Takeaway: Hockey stick growth proves your model is viral or scalable, making it highly attractive to investors looking for businesses that can achieve massive returns.
